Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NORTH SAN JOSE, CA-CarrAmerica Realty Corp. has added to its holdings at Corporate Technology Centre, an eight-building, 604,870-sf office/R&D development here. The Washington, DC-based REIT paid $43.8 million for 331,950 sf in five buildings, and now owns seven of the buildings for a total of 508,230 sf.The buildings were acquired from the developer of the park, a 50-50 joint venture of Menlo Equities and affiliates with iStar Financial Inc. The duo acquired the land (33 acres) for the overall development in 1998. Developed and leased in two phases in 1999 and 2000, the project includes four three-story buildings, three two-story buildings and one single-story building ranging in size from 19,550 sf to 99,870 sf. The site has 1/2 mile of frontage along Highway 237 between Zanker Road and North First Street. CarrAmerica’s newly acquired buildings are a combined 42% leased. The purchase price translates to $132.03 per sf, which CarrAmerica’s Northern California managing director Christopher Peatross describes as “a significant discount to replacement cost.” The other two buildings CarrAmerica owns in the park were purchased in July and are 100% leased.CarrAmerica expects its five-building acquisition to provide a year one GAAP return of 3.7% and a stabilized GAAP return of approximately 11%. In the San Francisco Bay Area, CarrAmerica now owns, directly or through joint ventures, interests in 89 office and R&D buildings containing approximately 6.3 million sf.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.