Deals

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.

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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-

Bayside
Technology
Park
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.

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