Bixby Invests another $36 Mil in Silicon Valley Office Properties

SoCal investors are finding much to their liking in Silicon Valley these days. One company that has really focused on the region over the past year is Long Beach-based Bixby Land Company, led by Bill Halford, which just closed on its fourth office acquisition in the area over the past year or so. In this latest buy, Bixby paid $36.4 mil for a two-building, 118.4k sf ($307/sf) office/R&D campus located in Santa Clara.

“The Silicon Valley’s economic recovery since 2004 has been significant with its increase in venture capital funding and employment,” said Mike Severson, Vice President of Acquisitions and Development for Bixby. “The resurgence represents a unique opportunity for Bixby to purchase property like this and capitalize on the market and in-place income.”

Located at 3111 and 3141 Coronado Dr, the two-story buildings sit on over six acres of land with access to the prime transit routes in Silicon Valley including all major South Bay freeways, access to commuter rail, light rail and multiple bus routes. Ideally suited for a single tenant, the buildings are divisible to accommodate multiple tenants. The parking ratio is 3.5 spaces per 1,000 square feet allowing for ample parking for tenants and visitors.

The buildings are presently 100 percent occupied by Applied Materials Inc. (Nasdaq: AMAT) on a triple net lease until July 2009. The company creates and commercializes the nanomanufacturing technology that helps produce virtually every semiconductor chip and flat panel display in the world.

The deal was brokered by Eric Fox and Joe Moriarty of CPS and Peter Castleton of Voit Commercial.

Bixby closed on its first Silicon Valley acquisition in October 2006 with the purchase of Bixby Tech Center in San Jose. The center has five R&D buildings totaling 302.2k sf and is occupied by Tivo Inc and Foundry Networks, among others. In January 2007, the company acquired Bixby University Station, four R&D and two retail buildings totaling 223.9k sf. The properties are located at 451-495 El Camino Real in Santa Clara. Then, in September 2007, Bixby acquired Santa Clara’s Airport Technology Park. The five buildings are located on 17 acres of land and feature approximately 300k sf of office space.

“Rents are continuing to push higher with demand outpacing the supply of new product, making the Silicon Valley a market that Bixby will continue to invest in for the foreseeable future,” said Severson.

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source: rentv.com