IRVINE, CA—CapRock Partners, a private OrangeCounty investment firm, has completed the sale of its MenloPark Tech Center project, and its properties in theMelrose Industrial Park project inPlacentia.

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The Menlo Park Tech Center property is located near theFacebook campus at 3565 HavenAvenue in Menlo Park. CapRock Partners acquired the assetin 2013 and leveraged its in-house development expertise torenovate the building's interior and exterior. The team alsosubdivided the space in anticipation of market demand fromventure-funded start-ups, and added individual utilities to eachunit. The changes quickly attracted tenants including ClickDiagnostics, FinSix Corporation, and Transcriptic Inc.,and the building was 100% leased within just six months at ratesexceeding those originally projected.

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“The swift lease-up and successful disposition of CapRock'sHaven project is a testament to the continued strength of the MenloPark/Silicon Valley market - and to our team's ability toanticipate the market, add value, and deliver product that isquickly absorbed,” said Pat Daniels, CapRockPartners co-founder and chief operating officer. “The Valley isexperiencing an increasing and serious shortage of flex/R&Dspace in the 5,000 - 10,000 square foot range for both incubationand second-stage companies. CapRock will continue to uncover andseize opportunities to service this sector of the market.”

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3565 Haven Avenue is a high-profile office/R&D building thatencompasses various units ranging in size from 5,278 to 9,825square feet. Greg DeLong and ChipSutherland of CBRE Palo Alto spearheadedboth the successful lease-up and sales marketing campaigns, whileScott Prosser and Jack DePuy ofCBRE San Jose represented the buyer in thetransaction.

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With the Melrose Industrial Park project in Placentia, CapRockacquired the holding - comprised of six premium industrialbuildings totaling more than 90,000 square feet - in late 2012 anddeployed a strategic redevelopment plan to reposition the buildingsfor sale.

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“We recognized the latent value presented by these assets, andknew we had an opportunity to leverage our industrial sectorexpertise to realize significant upside for our investors,”Jon Pharris, CapRock's president and co-foundersaid of the 2012 acquisition. “We were bullish on the market thenand continue to be aggressive in our acquisition strategy inSouthern California and beyond.”

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CapRock's project comprised six of the industrial park's 11buildings and encompassed extensive renovations, including interiorand exterior architecture, as well as landscaping. The objective:to capture a rapidly expanding buyer pool in this highlysought-after and supply-constrained North OrangeCounty submarket.

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“Using our decades of expertise in Southern Californiacommercial real estate as a lens, the CapRock team forecasted agrowing demand for industrial buildings for small- to mid-sizedbusinesses,” said Daniels. “The success of ourapproach was borne out in our swift sale of the redevelopedbuildings - ranging in size from 12,000 - 20,000 square feet - toowner/users for top dollar.”

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The most recent transaction - the sale of 1037 Melrose(17,500 SF) to Sunburst Shutters, a nationalleader in the manufacture and installation of custom shutters forthe residential market - represents the close-out of CapRock'soffering. Zach Niles of Jones LangLaSalle represented CapRock Partners on sales of theproject overall, including the 1037 Melrose transaction.Brad Schmitt of Studleyrepresented Sunburst Shutters in the acquisition of 1037Melrose.

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“The success of our Melrose Industrial Park project is powerfulvalidation of CapRock's entrepreneurial approach to value-addindustrial assets,” said Pharris. “Our team's keen grasp of themarket allowed us not only to acquire this asset, but to quicklyrecast it for today's industrial buyer and achieve pricing thatexceeded expectations.”

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David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.