SF Buyer Acquires Meridian Square Mixed-Use Project

SAN JOSE, CA-ATC Partners LLC of San Francisco has acquired the 164,000-sf Meridian Square, a mixed-use office and retail project. The property, a 164,000-sf project on Stevens Creek Boulevard, marks ATC's third Silicon Valley acquisition in 15 months.The project consists of three two-story office buildings totaling approximately 136,000 sf and two single-story retail buildings totaling 28,000 sf at 4300 Stevens Creek Blvd., near Highway 280. ATC bought the property from Meridian Square Investors of San Jose LLC, which was an asset under the management of UBS Realty Investors.Built 1974, the property consists of three parcels on about nine acres. Mike Halper, managing partner of ATC, says that one of the factors that attracted the buyer to the project was the comeback in the Silicon Valley office market.Vacancy in the Silicon Valley office market has declined to about 17.4% from 24.4% in 2003, according to the latest market reports. One of those reports, from Colliers International, says that "A consistent stream of demand for office space is chipping away at available supply" in the Silicon Valley. John Kovaleski, Mark Giovanzana and David Buchholz of Colliers International represented Seller Meridian Square Investors in the recent sale. Halper and ATC acquisitions director Drew Gordon represented ATC internally.ATC Partners' other deals in the Silicon Valley over the past 15 months include its $18.6-million purchase last year of the 126,000-sf West Valley Office park, a deal in which it worked with the Philadelphia-based private equity firm Lubert-Adler. Terms of its Meridian Square purchase were not disclosed.Also last year, ATC purchased Parkway Towers, a five-story, 71,000-sf office building at 4800 Great America Parkway. The group has acquired and renovated more than $500 million in industrial and office buildings in the San Francisco Bay Area and Southern California.