By Ariela Moraru
Marcus & Millichap has arranged the sale of the Calaveras Park Professional Center, a medical dental office park in Milpitas, Calif., for roughly $9.4 million, or $455 per square foot. The 21,008-square-foot multi-tenant property traded a cap rate of 6 percent and was part of a 1031 exchange. Vincent Schwab, senior managing director of investments in the firm’s San Francisco office, represented the seller, JB Matteson and procured the buyer, Sinogap LLC.
Located on East Calaveras Parkway at 466 E. Calaveras Blvd., across from City Hall and the Safeway-anchored Milpitas Town Center, the medical complex has easy access to interstates 680 and 880. The three single-story buildings were built in 1979.
The 1031 exchange
“This sale completes a 1031 exchange that started with the listing of a development property in Sunnyvale more than two years ago,” said Schwab in prepared remarks. “Numerous office building developers attempted to buy the land but faced substantial hurdles in obtaining entitlements. The 3.4-acre development site experienced numerous challenges while the city was refining the Peery Park specific plan. We closed that property earlier in May with a South Carolina-based hotel developer and my clients exchanged into the Calaveras Park Professional Center and an apartment complex in San Jose.”
The Silicon Valley redevelopment site which was part of the 1031 exchange changed hands for $21 million. Located at 767-769 N. Mathilda Ave. in Sunnyvale, Calif., the 3.4-acre redevelopment had been in the sellers’ family for over 50 years. Schwab and Associate Jeffrey Ida represented the seller, Sinogap LLC. The buyer, OTO Development, plans to develop a Hilton Garden Inn. A night club known as the Palladium, TL Beer Garden and a restaurant are currently at the location.
Images courtesy of Marcus & Millichap and Google Earth