Equity Office Properties' sale last week to a Brookfield Asset Management fund of 459,000 square feet of San Jose office buildings brings the total footprint of EOP's sold space in the last 18 months to more than 3 million square feet. The huge landlord continues to cash out in Silicon Valley — with more sales on the way as the market remains strong.
In the latest deal, EOP unloaded its 373,754-square-foot Rio Robles office park, which consists of seven buildings at the intersection of North First Street and Rio Robles in North San Jose; as well as the 85,585-square-foot 3553 North First St., which is located adjacent to the Rio Robles Properties
Brookfield paid $85 million, or 185 per foot, for the portfolio. The transaction was arranged by Joe Moriarty of CBRE's San Jose office, who declined to comment.
Counting the latest transaction, since last September EOP has now sold off at least 3.15 million square feet, not counting two major redevelopment sites sold to Kaiser Permanente and the Irvine Company.
Many of the buildings that have sold, including those in last week's deal, are part of the huge CarrAmerica portfolio that EOP parent Blackstone purchased in 2006. Blackstone acquired Equity Office in 2007. Locally, the portfolio operates under a unified EOP brand.
Ben Thypin, director of market analysis for Real Capital Analytics, said that the sell-off isn't surprising given a 5- to 7-year hold strategy. In addition, there is plenty of institutional investor money looking for opportunities right now in core markets, he said.
"There's certainly a lot of demand in your market," Thypin said.
Read More: http://www.bizjournals.com/sanjose/news/2013/11/23/latest-deal-propels-equity-office.html?page=all
With commercial market data now more readily available than ever, a broker can no longer bank on being the first person (or the only person) with information. Enter the era of the market report.
“Information used to be one of a broker’s main tools,” said Peter Von Der Ahe, a vice president with Marcus & Millichap. “Now part of the service a broker provides” is deciphering the onslaught of data.
Along those lines, in the past two years, commercial brokerages — including Colliers International, Avison Young, Massey Knakal and Cassidy Turley — have all begun hosting quarterly breakfasts to tout their data.
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What’s more, despite all of these new reports, there are still major holes when it comes to key data points.
For example, “a report that needs to exist is an industrial report for the outer boroughs,” said Ben Thypin, director of market analysis at Real Capital Analytics. However, the dominant industrial firms often sell buildings through word of mouth and may not need the publicity a report provides, he said.
Read More: http://therealdeal.com/issues_articles/the-market-report-era/
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.