January 11, 2018
In one of the largest real estate investment transactions in Silicon Valley in 2017, Vista Investment Group, in a joint venture with an institutional money management firm, has acquired Vasona Technology Park, a 314.3k sf campus in the Bay Area city of Campbell, for $113 mil ($360/sf).
Vasona Technology Park features seven freestanding one- and two-story office and R&D buildings ranging in size from 16k sf – 74k sf. Developed in 1963 and 1981, Vasona Technology Park is located on an 18.5-acre site bordered by Winchester Blvd, E Hacienda Ave and Dell Ave.
Vasona Technology Park was 100% leased at closing. Tenants include the Kaiser Foundation Health Plan and ChargePoint.
The acquisition provides Vista the opportunity to create value by continuing to reposition the older buildings in the project to a more creative office standard and leverage off of the expansive campus setting, one of the largest contiguous land sites in the area, according to Vista Investment Group President Jonathan Barach.
“This is our fourth, and probably most exciting project in the Silicon Valley,” said Barach. “The property is anchored by investment-grade tenants with long-term leases, and will benefit from both interior and exterior improvements, which we will implement as leases expire over the next several years. We will work immediately to improve the outdoor common areas with the creation of large collaborative work, dining and recreation spaces throughout the campus. The campus is located in one of the most supply-constrained sub- markets in Silicon Valley, proximate to highly desirable executive housing in the neighborhoods of Los Gatos, Saratoga and Monte Sereno.”
The acquisition of Vasona Technology Park brings Vista Investment Group’s Silicon Valley office portfolio to more than 673k sf. Its other assets, located in nearby San Jose, are 100% percent leased to a variety of semiconductor, optics, life sciences and wireless companies including Broadcom, Thinfilm, BioNex, Oclaro and O-Net Communications.
Vista’s acquisition of the Vasona Technology Park was one of the largest real estate investment transactions in Silicon Valley R&D in 2017.
“The Silicon Valley market experienced a strong second half of 2017 after a relatively slow start to the year,” said Eric Fox of Cushman & Wakefield’s Northern California Capital Markets Team, who marketed the property on behalf of the seller. “Investor optimism and tenant growth have returned to the marketplace.”