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SAN JOSE, CA-Locally-based Divco West is reportedly in the process of acquiring a floating rate acquisition loan of close to $100 million for an office property portfolio based largely in the Silicon Valley.

Divco didn’t not immediately return calls seeking comment. According to the Commercial Mortgage Alert newsletter, Divco is in the process of buying a 535,000-sf portfolio from a J.P. Morgan Investment Management client for $137 million. Divco has retained the Los Angeles branch of Holliday Fenoglio Fowler to arrange the financing, according to the newsletter.

Rents for the eight-property portfolio range from $10 per sf to $27 per sf, well below current rates, and 85% of the leases will be up for renewal in the next four years, according to the newsletter.

Divco West, which owns a concentration of office space in the Silicon Valley, in September bought 320,000 sf in the Shoreline Business Park in Mountain View. The firm estimates its total holdings at nine million sf.

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