Hines has enhanced its footprint in the San Francisco Bay Area with the acquisition of Oakmead West, an approximately 431,100-square-foot office/R&D campus in Sunnyvale, Calif. The global real estate investment firm purchased the seven-building Silicon Valley asset from Deutsche Asset & Wealth Management.
“The Oakmead purchase strategy is a long-term hold in a high-quality, core location,” Shawn Hardy, director with Hines, told Commercial Property Executive. Neither Hines nor Deutsche AWM has publicly revealed the Oakmead West transaction price. The group of properties last changed hands in 2013, in a deal valued at $119 million.
Oakmead West, which reached completion in 1998, encompasses the Class A buildings at 920, 935, 940, 945 and 960 Stewart Drive, as well as 490 and 510 DeGuigne Drive. Located within easy reach of a handful of major thoroughfares, the 22-acre campus is currently 96 percent leased to a list of tenants that includes telecommunications firm ShoreTel (now Mitel), biopharmaceutical company AbbVie and Trimble Navigation, which signed a lease renewal for a total of nearly 140,000 square feet at 935 Stewart and 510 DeGuigne in 2017.
Hines plans to invest in capital improvements at Oakmead West.
Bay area pursuits
Hines has made a few purchases in the Bay Area over the last 12 months. Acquisitions in 2018 included the 515,000-square-foot Ygnacio Center office project in Walnut Creek and Clearview Business Park, a creative office campus encompassing roughly 380,000 square feet in San Mateo. And 2019 is likely to bring more deals in the market.
“We’re focused on evaluating new high-quality office, R&D and multifamily assets in the Bay Area and will continue evaluating opportunities given the healthy market fundamentals,” Hardy said.
Image courtesy of Hines