Office/R&D in Golden Triangle Finds New Owner

SANTA CLARA, CA–A two-story, 80,878-square-foot office/R&D building located at 3003 Bunker Hill Lane was acquired by affiliates of Equus Capital Partners Ltd., a private equity real estate fund manager. The seller was a joint venture between TMG Partners and Alcion Ventures LP, a Boston-based real estate private equity firm. TMG and Alcion were represented in the transaction by the Eastdil Secured team out of the San Jose office. 

Built in 1980 and situated on 5.6 acres, the property was extensively renovated in 2014, and was 100% leased to two tenants at the time of closing. In 2014, TMG leased 90% of the project to Jasper Technologies Inc., a market leader in cloud-based platforms, which uses the building as its global headquarters. Jasper will be expanding into the balance of the building in 2016, upon the vacating of the space by another tenant.

TMG Partners acquired the building in December of 2012 and embarked on a major capital renovation plan that involved demolishing and re-building the interiors with upgraded mechanical and electrical systems, new restrooms and entry lobbies. In addition, TMG completed extensive landscape improvements including an outdoor patio and gathering area, parking lot expansion, as well as exterior window line glazing replacement.

“Our strategy was to entirely renovate an older multi-tenant office building in order to attract a single-user looking to locate in the booming Santa Clara market,” said David Cropper, managing director of TMG Partners.

The acquisition of 3003 Bunker Hill Lane was made on behalf of BPG Investment Partnership IX LP, Fund IX, a discretionary fund managed by Equus. Affiliates of Equus also own the 600,000-square-foot Cityview office complex in the heart of downtown San Jose.

Jonathan Praw, vice president and head of west coast operations for Equus Capital Partners Ltd. tells GlobeSt.com:  "We are excited about the tenancy and the overall transforming mixed-use neighborhood. We are thrilled to add this property to our growing Silicon Valley portfolio.”

The property, which provides an attractive parking ratio of 3.5 per 1,000 square feet, is strategically located in Silicon Valley's “Golden Triangle,” bordered by Highway 101, Interstate 880 and California State Road 237, providing excellent regional access throughout the Silicon Valley area. The property is six miles from the Mineta San Jose International Airport and is close to executive housing and amenities, including the Santa Clara Convention Center, Levi's Stadium, restaurants, and hotels. In addition, the property is less than 1/3 mile north of the VTA light rail, a desirable alternative means of transportation for area employees.

“Tenant activity in Santa Clara has been robust given the new 49ers stadium, and strong corporate headquarters activity north of 101 along Great America Parkway,” added Michael Covarrubias, chairman and CEO of TMG Partners. “Santa Clara continues to be a desirable combination of strong housing and employer base with relative affordability for companies in the Bay Area.”