JV Buys Nearly $200M in Offices from Equity Office Properties

M West Holdings, a Sherman Oaks, CA-based diversified commercial real estate investment firm, has invested nearly $200 million to purchase North San Jose properties from Equity Office Properties, adding roughly 840,000 square feet to its portfolio. According to a Silicon Valley Business Journal article, the transaction marks the largest acquisition, by square feet, so far this year in the South Bay, topping the TMG/Fortress pickup of eight buildings from Cisco. Terms of the deal and pricing were not disclosed by the involved companies, but industry sources pegged the transaction at just under $200 million, or $240 a foot.

M West is a joint venture between DivcoWest Properties and TPG Real Estate, which originally formed the company last year to acquire the Mission West Properties Inc. portfolio when Mission West disposed of all of its real estate assets in December for an enterprise value of approximately $1.3 billion. M West has now added the following properties to its roster:

Baytech Business Park, a 307,000-square-foot, four-building campus at 150-180 Baytech Drive in San Jose;

Valley Technology Center, a 471,000-square-foot campus at Zanker Road and East Trimble Road in San Jose;

and 3025 Orchard Parkway, a 62,000-square foot, single-building project.

For more news and information visit Blumberg Capital Partners.