JER sells California R&D assets

The McLean, Virginia-based firm has sold three vacant properties in the Bayside Technology Park. The firm has already sold eight other properties as it delevers the Fremont portfolio.

JER Partners has sold three vacant industrial units in its Bayside Technology Park portfolio as it attempts to delever the California assets.

The McLean, Virginia-based firm said it had sold 46859, 46875 and 46889 Bayside Parkway to a corporation planning to relocate its operations from San Jose, in California to Fremont.

JER acquired the properties between September 2005 and June 2006 in a joint venture with San Francisco-


based development and investment firm TMG Partners. The firm declined to disclose financial details but said the properties were acquired through its $823 million JER Fund III, which closed in October 2003.

According to data provider Real Capital Analytics, the duo bought a portfolio of industrial assets from Renco Investment Company for more than $320.4 million over 10 months in 2005 and 2006, including 1.4 million-square-foot of research and development space in Bayside Technology Park.

JER said in a statement the three vacant buildings totalled 196,000-square-foot of space. The sale of the properties follows the disposition of another eight properties from the Renco portfolio. JER now has eight buildings remaining, totalling 544,960-square-foot.

RCA data shows JER sold 47900 Bayside Parkway to HRPT Properties Trust for $57.5 million in March last year, and resold 313,000-square-foot of property at Bayside Technology Park to Legacy Partners in March 2006 for $58.7 million after originally acquiring it from Renco the previous September.