GI strikes deals on behalf of CalPERS, CalSTRS accounts

GI Partners has made its second investment on behalf of technology property-focused separate account with the California Public Employees' Retirement System (CalPERS). The deal comes in the wake of last week’s announcement of its first investment on behalf of a similar partnership with the California State Teachers’ Retirement System (CalSTRS).

The Menlo Park, California-based private equity investment manager announced today the acquisition of Liberty Park at Tysons, a 225,038-square-foot data center and office property located in Vienna, Virginia. The acquisition was made through TechCore, a $500 million discretionary core real estate vehicle managed by GI Partners on behalf of CalPERS. 

Although GI Partners did not provide details of the transaction, Real Capital Analytics lists the sale price as $93.5 million. The property, which was built in 1971 and renovated in 1995, was sold by a joint venture between Transwestern Investment – now known as Pearlmark Real Estate Partners – and Bethesda, Maryland developer The Goldstar Group, which acquired the asset for $25.4 million in September 2005, according to RCA.

Liberty Park is principally occupied by the General Service Administration on a long-term lease in support of a mission-critical application. Rick Magnuson, executive managing director of GI Partners, said: “This was an excellent opportunity for us to acquire a state-of-the-art data center facility that recently underwent a major renovation to support the long-term needs of a world-class tenant.”

In September, GI Partners made its first investment on behalf of TechCore, acquiring a Class A technology office building in San Jose. According to RCA, the firm paid $76.5 million to purchase the eight-story property from The Blackstone Group, which acquired it for $30.4 million in January 2010. The 198,033-square-foot building, known as Skyport Plaza, serves as the global headquarters of Atmel Corporation, a global leader in the semiconductor industry.

GI Partners and CalPERS formed TechCore earlier this year to acquire technology-focused real estate in the US, including data centers, internet gateways, corporate campuses for technology tenants and life science properties located in core markets and leased to industry leading tenants.

Meanwhile, late last week, GI Partners announced the acquisition of Lightwave Corporate Center, a 166,892-square-foot data center and office building in San Diego. That investment was made through DataCore, a $250 million discretionary core vehicle managed by the firm on behalf of CalSTRS.

GI Partners also did not provide details of that transaction, but RCA lists the sale price as $52.5 million. The two-story property, which was built in 1986 and renovated in 2007, was sold by Irvine, California investment firm LBA Realty, which acquired the asset for $26 million in December 2006, according to RCA. The fully occupied building is leased to American Internet Services, an enterprise-class data center, cloud, connectivity and managed services company, and San Diego Gas & Electric.

Also formed earlier this year, DataCore represents the continuation of a long-standing and successful relationship between CalSTRS and GI Partners. CalSTRS is a limited partner in GI Partners Fund II and III and, earlier this year, GI Partners advised CalSTRS on its acquisition of LCOR, the Berwyn, Pennsylvania-based investment and development company focused on large-scale multifamily, commercial and mixed-use properties.