HP Sells 901 Page Avenue to Overton Moore

The all-cash sale closed this week. Overton Moore sent out information on the deal Wednesday but did not reveal the purchase price. HP has not yet filed anything on the transaction with the SEC. GlobeSt.com will update this story when the purchase price comes to light.

Overton Moore president Timur Tecimer says in a statement that the acquisition fits within its strategy of "buying assets below replacement cost in well positioned infill locations adjacent to major transportation corridors." One local source tells GlobeSt.com that the replacement cost would be at least $150 per square foot.

The campus is located along Interstate 880 and has 2.5 parking spaces per 1,000 square feet of built area. The property's infrastructure includes 21 kVA utility service, 100% air-conditioned facilities, epoxy-coated ESD concrete slab floors, overhead power distribution bars in the manufacturing area, emergency power, 25-foot to 28-foot clear heights and ESFR sprinkler systems.

Eric Fox, SVP and principal of Corfac International, and Peter Castleton, an SVP with Voit Commercial Brokerage, also a Corfac affiliate, represented OMP on the acquisition. Richard A Ingwers, executive director of Cushman & Wakefield, and Brad Rogers, a senior director with C&W, represented HP. The brokers either declined comment on the price or were not immediately available for comment.

Fox tells GlobeSt.com that the building is in excellent condition but hasn't had any major exterior cosmetic work in a long time. He expects Overton Moore to make enhancements to the property before reintroducing it to the marketplace next year. Already, there has been interest. Tecimer states that the firm has had "several users interested in the facility due to its unique features" and Fox backed that up, saying that he introduced to Overton Moore several tenants that are currently looking for a new location.

The facility was occupied by Tandem Corp. in the 1990s, which was subsequently bought by Compaq, which was in turn acquired by HP. Overton Moore acquired the campus through OMP Industrial III, an investment vehicle that targets value add industrial assets in California, Arizona and Nevada. The company likes to acquire vacant buildings, buildings with roll-over risk within the first two years, or ones that require repositioning and re-development.

Earlier this month, HP launched and closed the issuance and sale of $2 billion of nearly 6.13% Global Notes due March 1, 2014. In September, the company announced it would eliminate 24,600 jobs and create 12,000 new ones over the next three years as it assimilates its $13.9-billion acquisition of Electronic Data Systems and adjusts its employee mix as part of an effort to widen its base in the consulting and services business. HP employed approximately 178,000 before the merger, which added an additional 142,000. About half the layoffs are expected to come from the US while the rest of the layoffs will be divvied up among combined companies' operations in the rest of the world.