Investcorp and California-based Bixby Land Company have formed a joint venture to acquire office and research and development properties in the Silicon Valley.
“The Silicon Valley R&D market is very strong,” Brian Kelley, a principal with Investcorp’s real estate division, said in a statement on the venture. “By way of example, at the end of Q3 2007, this market had enjoyed 11 consecutive quarters of declining vacancy rates and seven consecutive quarters of increasing rental rates.”
Bixby president and chief executive, Bill Halford, added that increasing demand for quality office and research and development buildings and limited new construction in the area are exerting upward pressure on rental rates in the region.
The Airport Technology Park in Santa Clara—originally acquired by Bixby in September for $85 million (€58 million) and recapped by the joint venture at the same price—is the first of a series of acquisitions planned by the partnership. The five-building property, located on 17 acres of land, comprises approximately 300,000 square feet of office space. The property features tenants such as Macrovision Corporation and BAE Systems, Europe’s largest defense contractor.
The deal is Investcorp’s second major transaction on the West Coast since the opening this year of its Los Angeles real estate investment office.