CBRE Global Investors just can’t get enough of Sunnyvale.
Five months ago, I wrote about the investment manager scooping up about a half million square feet in that city’s Moffett Park submarket, in what may or may not have been a stealthy land assemblage forGoogle Inc.
And since then? Global Investors has been very busy indeed.
By my count, the Los Angeles based firm has now acquired, or will soon close, on roughly triple that amount of space — at least 1.5 million square feet in upwards of 30 buildings. The total cost of these deals is now at least $425 million, according to a rough tally of title and tax records, as well as estimates by market observers. (My numbers may be off because I was not able to confirm every property price, and I may have missed some.)
Most of these buildings are older, low-density R&D or industrial-type product that industry observers consider ripe for redevelopment. The Moffett Park submarket contains enough office capacity for about 1.33 million additional square feet of space under Sunnyvale's current city planning guidelines.
"A lot of this is probably driven by office development as opposed to industrial investment," said Ben Thypin, director of market analysis for Real Capital Analytics, a New York-based research firm. "They see the office market is hot, so whether it's Google or CB or other investors, they're trying to gather up as much convertible space or buildable land in a particularly good office market."
Read More: http://www.bizjournals.com/sanjose/news/2014/08/25/update-cbre-global-investors-deals-in-sunnyvale.html
The acquisition of Netherlands-based ING Group's real estate investment business "is certainly a good strategic move for CB because it gives them a much more stable stream of income," said Ben Thypin, director of market analysis at Real Capital Analytics Inc.
"They were a sizable force in this business before, but this really puts them at the top and changes the fee composition of their revenue substantially," Thypin said.
Investors place more value on predictable recurring revenue, which asset management fees provide, he said. CB Richard Ellis closed at $25.34, up 71 cents, or 3%.
Read More: http://www.latimes.com/business/realestate/la-fi-cb-richard-ellis-20110216,0,6619206.story
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.