JV Buys Tasman Tech Park for $116M

Deutsche Asset & Wealth Management has sold Tasman Technology Park in the Silicon Valley Market to a joint venture between Houston-based Lionstone Investments and Bay Area-based Orchard Partners, in partnership with an institutional client, for about $116 million, or roughly $190 per square foot. The park covers fourteen office/R&D buildings totaling 608,968 square feet, prominently located along Tasman Drive, and conveniently positioned one stop from new Milpitas Bay Area Rapid Transit (BART) station, which will be completed in early 2017. Full terms of the deal were not disclosed.

"Orchard Partners and Lionstone were attracted to this opportunity by its prominent, accessible location, the continuous glass line of the buildings, and the opportunity to raise the overall image of the campus through building and common area improvements," stated Michael Biggar, Managing Partner of Orchard Partners. "We intend to make a substantial capital investment in the property to create a community oriented work environment in which tenants will thrive. We have a 47 acre canvas with which to work."

"Lionstone is thrilled to be a part of the growing Silicon Valley market anchored by innovative technology leaders such as Google, Apple, Samsung and Cisco. The ideal location of the Tasman Technology Park, in the center of the creative, technological hub, offers a unique opportunity to deliver creative, campus environments equipped with desired features such as beautiful outdoor spaces and work areas that attract smaller tech tenants that can use these amenities to recruit and retain the best employees," said Jane Page, Lionstone Investments CEO.

Tasman Technology Park was 98% leased at the time of sale to a diverse tenant roster including technology leaders such as FireEye, Micron Technology, and Trimble Navigation. Deutsche Asset & Wealth Management, formerly known as Rreef, has been selling many of the Peery/Arrillaga portfolio properties, following a roughly eight-year hold, according to a Silicon Valley Business Journal article. Other sell-offs include a Sunnyvale package sold to Lane Partners last December for about $250 per square foot.

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