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
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.
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