Washington Holdings Sells 2.2 MSF Silicon Valley Portfolio

A joint venture of TMG Partners, Grove Real Estate Partners and an affiliate of Lone Star Real Estate Fund VII LP has acquired a 2.2 million-square-foot portfolio of R&D assets spread across six campuses in Silicon Valley. Washington Holdings sold the collection.

With 50 buildings spanning 140 acres, it’s the largest institutionally owned portfolio of Class A, predominantly single-story, mission-critical research and development properties in Silicon Valley, according to the new owners.

TMG Partners and Grove Real Estate Partners will operate the portfolio. The sale price was not disclosed.

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Washington Holdings invested approximately $173 million into base building, exterior and interior renovations across the portfolio during its ownership. The properties are located within a 5-mile radius of each other within the Golden Triangle in Santa Clara, San Jose and Milpitas, Calif.

The portfolio is 87 percent leased to a roster of 63 tenants in the semiconductor, medical device, telecom, data security and artificial intelligence industries, with a weighted average lease term of 3.3 years. The specialized infrastructure includes clean rooms, semiconductor wafer fabs, data centers and wet labs.

What’s in the portfolio

TasmanTech Center, located in Milpitas, is the largest asset in the portfolio at 736,756 square feet. The campus has 14 buildings on 47 acres. It was recently renovated with the addition of new landscaping, a tenant fitness center, three restaurants and installation of 15 EV chargers.

The other properties are:

• Mission Park R&D is a 500,338-square-foot, 12-building campus on 33 acres in Santa Clara. The property includes a 73,000-square-foot standalone data center, a 175-key Element by Westin hotel and a retail center anchored by Mendocino Farms, a fast-casual restaurant. It is adjacent to the campuses of NVIDIA, Intel and Oracle.
• Montague Square is a 251,155-square-foot, six-building campus on 15 acres at the corner of Montague Expressway and North First Street in San Jose. It is steps from the Orchard VTA light rail station.
• North First @ Orchard Station is a single-story, 266,846-square-foot, six-building campus located on 17 acres in San Jose. The property is 96 percent leased.
• Montague Oaks is an eight-building, 295,003-square-foot campus on 18.5 acres in San Jose. The property includes a 5,000-amp telecom switch facility sited atop a fiber intersection.
• Zanker Place is a four-building, 141,947-square-foot campus on 9.4 acres in San Jose. The property is near PayPal’s headquarters and Google’s Brokaw campus.

AI, tech firms driving Bay Area leasing

AI and tech companies leased more than 14 million square feet in San Francisco and Silicon Valley in 2025, according to a recent CBRE Tech Gateway Office Markets report, accounting for 55 percent of total leasing activity. Since 2019, AI companies have leased about 21 million square feet in the region.

The Golden Triangle submarket, formed by the intersection of U.S. Highway 101, state Route 237 and Interstate 880, is home to headquarters and major R&D facilities for companies including NVIDIA, Intel, Cisco, Broadcom, Samsung, TSMC, PayPal and Apple.

The acquisition is the second investment in the Bay Area made by Lone Star Funds, in the past 12 months. In January, the firm acquired the mortgage secured by 600 California St., a 20-story, 360,000-square-foot office tower in San Francisco’s financial district. In May, an affiliate of Lone Star formed a joint venture with Harvest Properties to recapitalize and reposition the tower.

In May, TMG Partners teamed with equity partner Bridges Capital LLC to acquire Metreon, a 320,000-square-foot retail and entertainment destination in downtown San Francisco.

Grove Real Estate Partners, meanwhile, partnered with DivcoWest in January to acquire Campus at Trimble, a four-building, 252,655-square-foot R&D campus in San Jose.

Advisors for portfolio deal

An Eastdil Secured team including Managing Directors Stephen Van Dusen, Nate Jones and Matt Haden, Director Jim Castignani, Senior Vice President Kurt Chong and Associate Will Crummey advised Washington Holdings.

Brokers from four firms represented the buyers. A Newmark team was represented by Vice Chairmen Mike Saign, Jeff Arrillaga, Joe Kelly and Managing Director Grant Meylan.

CBRE’s team included Vice Chairman Chris Shepherd, Executive Vice Presidents Christian Marent and Mark Christierson, Senior Vice Presidents Sherman Chan and Bob Steinbock and First Vice President Joey McSweeney.

A Colliers team included Vice Chairs Craig Fordyce and Mike Rosendin.

Finally, a Cushman & Wakefield team included Executive Director Colin Feichtmeir, Senior Director Gregory Davies, who is now a managing director at JLL, Executive Vice Chairman Steve Horton and Director Kelly Yoder.