All three buildings saw extensive exterior and interiorretro-fits and seismic upgrades. As a result, AMB executives saysthe buildings "have many advantages of new buildings at a muchlower occupancy cost than other competing class A products."

|

Mark Hansen, AMB's SVP of value-add conversions, tellsGlobeSt.com that new R&D office buildings command rates closerto $3.25 per sf (NNN), so its highly renovated product for 75% lesshas been attractive to tenants.

|

In the largest of the three deals, Omneon Inc, a maker of mediaservers and content storage and distribution products, leased a69,000-sf building at 1237 East Arques Ave., which is within thetwo-building, 132,000-sf AMB Lakeside Business Center. The second,63,000-sf building within the development, 432 Lakeside, is set tobe renovated next; the triple-net asking lease rate is $1.75 per sfper month. Craig Fordyce and Mike Rosendin with ColliersInternational have the leasing assignment for the development.Steve Levere of Jones, Lang, LaSalle and Brian McCorduck withCushman & Wakefield represented Omneon in its leasenegotiation.

|

In the second largest deal, Innovalight Inc., a maker ofthin-film solar panel modules leased 35,537 sf of an 49,000-sf,two-story building at 955 East Arques Ave., within AMB ArquesBusiness Park, a two-building, 85,454-sf development. Brokers KalilJenab, Randy Arrillaga and Jim Kovaleski with BT Commercial havethe listing assignment. Lori and Tom Sweeney with Wayne Mascia& Assoc. represented Innovalight. The asking rate for theremaining space is $1.85 per sf (NNN).

|

In the third deal, Mirapoint Software, which plays in the emailserver space, leased a 27,000-sf building at 1215 Bordeaux Dr., akaAMB Manzanita R&D. Kalil Jenab and Randy Arrillaga with BTCommercial had the leasing assignment. Hugh Scott with the StaubachCo. represented Mirapoint. The building has been built out with 65%open office space and 35% light manufacturing/lab space with aclean room and anti-static flooring, according to a flyer on theproperty.

|

AMB acquired all three developments between August 2007 andFebruary 2008. The acquisitions were off-market transactions fromdifferent sellers. Hansen says AMB has one other conversion projectunder way in North San Jose and is evaluating several other of itsassets in the market for value-add conversions or fullredevelopment.

|

AMB's San Francisco Bay Area portfolio totals approximately 11million sf of operating and development properties.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.