Orchard Business Park Sold for $134/sf

PS Business Parks Inc., a a publicly traded full service real estate company based in Glendale, CA, announced this week that it had acquired Orchard Business Park in San Jose for $16 million, or $134 per square foot. PS Business Parks purchased the the 8-acre complex from Colony Capital in a transaction arranged by a CBRE team led by Joseph Moriarty, out of the brokerage's San Jose office, according to a Silicon Valley Business Journal article. The acquisition increases the company's presence in the Bay Area to 7.2 million square feet, comprised of 30 business parks located throughout the East Bay, Mid-Peninsula and Silicon Valley markets, which is currently 95.8% leased.

"Orchard Business Park is a great addition to PSB's vibrant Bay Area portfolio, where the company serves the needs of over 930 customers that are attracted to our well located portfolio of flex, office and industrial parks," said Joseph Russell, president and CEO of PS Business Parks in a press release. "With 80% of the leases at Orchard Business Park expiring over the next 24 months, we anticipate meaningful demand from both existing and new customers along with strong rental rate appreciation, consistent with the performance of our Bay Area parks."

For more news and information visit Blumberg Capital Partners.

Beaverton Corp Parks Sell for $160M

PS Business Parks, Inc., a Glendale, CA-based REIT focused on multi-tenant flex, office and industrial space, announced this week that it had completed the sale of two business parks in Beaverton, Oregon for $159.9 million. With representation from Eastdil Secured, PS Business Parks sold the properties to an unnamed buyer; terms of the deal were also not disclosed. After the sale, PS Business Parks has one remaining 102,000 square foot business park in Portland, Oregon, that it also intends to sell and, when complete, the company will no longer own assets in Oregon.

The first property, Cornell Oaks Corporate Center, was master-planned in 1982 and previously sold in 2002 for $87.5 million. The 12-building corporate park was the biggest deal of the year for Norris Beggs & Simpson in 2001. Talcott Realty I Limited Partnership had owned Cornell Oaks since 1995 and put it up for sale in November 2000. The second property, Creekside Corporate Park, is one of the largest business parks in the Portland metropolitan area with close to 525,000 square feet of Class A office and flex space. Occupancy of the portfolio at the date of sale was 89.6%, according to a press release.

For more news and information visit Blumberg Capital Partners.

RREEF America Sells Bay Area Industrial Assets for $520M

RREEF America REIT II Corp. and its affiliate, Northern California Industrial Portfolio, Inc., completed the sale of a 5.3 million square foot industrial and flex portfolio for $520 million this month according to a San Jose Mercury News article. PS Business Parks (PSBP) acquired the portfolio and, in connection with the transaction, assumed a $250 million secured loan that matures in December 2016. In addition to the secured loan, PSBP also entered into a three-year unsecured term loan for $250 million with Wells Fargo Bank.

"This is the largest transaction we're aware of in the Bay Area this year," said John Yandle, a senior vice president in the Santa Clara office of Cornish & Carey Commercial Newmark Knight Frank, a commercial realty firm. "There is nothing that would beat a half a billion dollars."

The portfolio consists of 18 multi-tenant business parks comprised of 2.9 million square feet of light industrial space and 2.4 million square feet of flex space in nine Bay Area cities and is currently 82.2% leased to 216 tenants.

For more news and information visit Blumberg Capital Partners.

13 Building Westchase Corporate Park Sold in Houston

PS Business Parks, Inc., a self-advised and self-managed equity REIT, sold Westchase Corporate Park in Houston, Texas for $9.8 million to a joint venture according to a Houston Business Journal article. The JV, AF Westchase LLC, is led by Adler Real Estate Fund and TriGate Capital. Adler Real Estate Fund is a discretionary fund managed by Adler Group, a Florida-based commercial real estate firm, and TriGate Capital is a national real estate private equity firm based in Dallas. PS Business Parks was represented by the Houston and Dallas offices of CB Richard Ellis in the transaction while the AF Westchase was represented by Matthew L. Adler, Chief Investment Officer of Adler Group and Jeffrey Yarckin, Managing Member of TriGate Capital.

Westchase Corporate Park, located at 11201 Richmond Ave. in the Westchase District, is a 176,977 square-foot business complex comprised of small bay offices and flex buildings. The district is home to the global headquarters for Honeywell and Western Geophysical, and other high-profile tenants including Men's Warehouse, MI Swaco, BMC Software, American Express, GE Capital and JP Morgan Chase.

For more news and information visit Blumberg Capital Partners.