Rreef Taps Four Firms to Lease 5M-SF Portfolio

The portfolio includes a mix of 1980s and 1990s buildings located in the cities of Mountain View (Synopsys campus), Santa Clara (Marriott Business Park), Milpitas (Milpitas Business Park and the Quantum/Maxtor campus), Sunnyvale and San Jose. The portfolio's 132 tenants include ADAC Laboratories/Philips Medical Systems, Maxtor/Seagate Technology, Synopsis and Samsung.

The assignments are big news in the region because Peery and Arrillaga, who continue to own between three million sf and four million sf in the region, tend not to list their properties with brokers and, prior to the dot-com meltdown, limited the commission an outside broker could earn for bringing in a tenant, according to local brokers.

The buildings located in Mountain View, Sunnyvale and Santa Clara (south of Highway 101) are in the hands of Cornish & Carey Commercial Oncor International. Colliers International has the leasing assignment for several other Santa Clara properties. CB Richard Ellis will lease the properties in Milpitas and in San Jose (north of Brokaw Road). Corporate Property Services will handle the other properties in San Jose. It wasn't immediately clear which firm, if any, has the biggest chunk of the portfolio.

Colliers Silicon Valley based managing director Jeff Fredericks tells GlobeSt.com that his firm's piece of the action includes close to 400,000 sf of available space. The brokers with the assignment are Rob Shannon, Craig Fordyce, Dave Schmidt and Joe Kelly. The other brokerage houses involved were unavailable for comment; Rreef declined comment.

Kelly tells GlobeSt.com that the listing is a significant opportunity given the recent increase in demand for R&D properties in the Silicon Valley. Net absorption of R&D properties in the valley through April was 2.18 million, which represents 80% of the total for 2005, which was the best year since 2000, according to Colliers numbers. "The pipeline of vacant space coming back to the market has decreased while demand continues," Kelly says. "It's definitely an opportunity."