Consolidated-Tomoka Land Co. has purchased a 76,000 square foot single-story Class A two-tenant office building in Santa Clara for $30 million.
The Property is situated on 5.24 acres and is 100% leased to Centrify Corporation and Adesto Technologies under triple-net leases with remaining terms of approximately 4 years and 7 years, respectively. The Property was built in 1978 and underwent a complete renovation in 2014 totaling approximately $14 million. The current zoning of the 5.24 acre parcel also allows for an additional 100,000 square feet of density. The transaction was partially funded using the proceeds from a recent 17 acre land sale. The balance of the purchase is expected to be part of a 1031 like-kind exchange.
The Property, at 3600 Peterson Way, is immediately adjacent to the newly developed Campus at 3333, a 1.5 million square foot office development by Beacon Capital and Menlo Equities. The Property is also adjacent to the 218,000 square foot office building recently purchased by Boston Properties that they have announced will be redeveloped into a 632,000 square foot Class A office campus. Additionally, the Property is located near Santa Clara Square, the $1.0 billion mixed-use project developed by Irvine Company.
John Albright, President and Chief Executive Officer of Consolidated-Tomoka said, “We are pleased to have purchased this high quality, newly renovated property in one of the strongest markets in the country at the high end of our cap rate range.” Mr. Albright noted, “Year to date we have acquired approximately $79.8 million of new income property investments at a weighted average cap rate of 6.14% which is within our 2016 acquisition and cap rate guidance.”