CAMPBELL — A big technology and medical office park in Campbell has been bought by a veteran real estate company in a deal that shows a healthy profit over its prior price.
Kennedy Wilson, a worldwide real estate investment company, has bought Vasona Technology Park, a six-building complex near the corner of Winchester Boulevard and East Hacienda Avenue in Campbell that totals 267,500 square feet.
Beverly Hills-based Kennedy Wilson, acting through an affiliate, paid $147.3 million for the complex, according to public documents filed on July 16 with the Santa Clara County Recorder’s Office.
Cushman & Wakefield commercial real estate brokers Eric Fox, Seth Siegel, Steven Hermann, Ryan Venezia, and Rick Ryan arranged the property transaction.
“Vasona Technology Park has a great location, excellent tenant base, and long-term leases,” said Fox, an executive managing director with Cushman & Wakefield. “The buildings are 100% leased. There’s everything to like about this asset.”
The seller was an alliance of Santa Monica-based Vista Investment Group and Newport Beach-based PIMCO, which bought the office campus in 2018 for $113.3 million, county records show.
Vista Investment and PIMCO originally bought seven buildings at the site totaling 314,300 square feet. Last year,
Vista and PIMCO sold one of the smaller buildings to Santa Clara County for a county fire agency operation, according to Fox. This latest transaction on July 16 involved the remaining six buildings in the complex.
This deal for the six office buildings suggests the property’s value has jumped 66% in three years.
The price for the original seven buildings was $332 a square foot. The price for the six buildings in the most recent transaction worked out to $551 a square foot.
Silicon Valley has remained a hotbed for commercial real estate investors despite the economic uncertainties that the coronavirus has unleashed.
Vasona Technology Park boasts some high-profile tenants that appear to be an enticement for investors.
Among the well-known tenants: ChargePoint, which provides a network of charging stations for electric vehicles, has its corporate headquarters in the office complex; and Kaiser Permanente, which has a big medical office center in the tech hub.
Also in the office park are Imperative Care, a biotech company creating technologies to combat strokes; and Creganna Medical, a medical supply firm.
“There’s a lot of innovation happening here,” Fox said. “You have ChargePoint, which is in the middle of all the things going on with the electric vehicle industry. Imperative Care is an innovative medical devices company. Kaiser is a giant in health care.”
A number of the tenants have prospered amid the problems that the coronavirus has created.
“These three companies have been very resilient and more coming out of COVID,” Fox said.