Praedium-South Bay JV Buys Former IDT Headquarters

SANTA CLARA, CA-The Praedium Group of New York City and its local partner South Bay Development of Campbell, CA have acquired the former headquarters for Integrated Device Technology. The vacant 43,700-sf building sits on two acres contiguous to the Coronado Stender Business Park, a 227,000-sf park the joint venture acquired earlier this year for $26 million, or $113 per sf.

The purchase price for the IDT building was $2.5 million, or $58.14 per sf. Praedium principal Chris Hughes described the investment as an opportunity to bring another property into the Coronado Stender Business Park at an attractive price. These properties are located in the center of Silicon Valley, which is in the middle of a promising business revival that we expect to continue,” he says.

The IDT building, located at 2975 Stender, was built in 1980. IDT vacated the building in July 2005 when it opened its new corporate campus in south San Jose. The broker on the transaction was Doug Yoder of CB Richard Ellis.

South Bay Development acquires, develops and owns commercial property for its own account and in partnership with a variety of institutional investors. The firm focuses its efforts entirely in Northern California. This is its fourth deal with Praedium, a real estate investor focusing on under-performing and under-valued assets that is investing its most recent $700 million real estate private equity fund, Praedium Fund VI. The fund invests in mid-cap assets throughout the US and Canada in the $10-million to $70-million range, targeting multi-family, office, retail and industrial property types.

Although the Coronado-Stender Business Park was fully leased when the JV acquired it in March, it fits Praedium because the major tenant is IDT, which will not be renewing its 120,000 sf of leases at the park as they expire over the next three years. The first lease expiration came this fall. Dupont is the park’s other tenant.