Kinship and Simeon Buy Two Office Properties in Sunnyvale for $55MM
Chicago-based Kinship Capital and San Francisco-based SIMEON Commercial Properties have formed a joint venture to acquire two office buildings in Sunnyvale, 810 West Maude Avenue and 470 Potrero Avenue.
These two properties total around 110,000 square feet. The purchase price on the assets was around $500 per square foot or $55 million, according to sources that track office building sales in the region. SIMEON declined to comment on the purchase price when contacted for this story.
These properties were acquired from Menlo Park-based Lane Partners. There were no real estate brokers involved in the transaction on either the buy or sell side.
“These two properties are in a great location, are occupied by very strong tenants, and Sunnyvale is a very strong office market,” says J. Russell Pitto, chairman at SIMEON Commercial. He declined to name the tenant. Sources that are aware of these properties state that both buildings are fully leased to Apple.
Kinship was not able to comment beyond a prepared statement. “As demand for corporate space continues to grow in the Silicon Valley market, Kinship Capital is well positioned to leverage its unique blend of institutional-scale financial strength and ultra-long investment horizon. These latest acquisitions add to Kinship’s growing office portfolio, and highlight some of Kinship’s advantages, including flexible investment return targets and a virtually unlimited holding period,” said Nick Thomson, a principal with Kinship.
The joint venture on these two properties has Kinship as the main equity partner and majority owner of the properties and SIMEON Commercial as the local operating partner in charge of the day-to-day duties on the assets. The expectation is that these two firms will continue to conduct business together in the future.