Rockwood sells Apple campus for $291m

The firm re-tenanted the 15-acre property before selling it to a New York-based firm.

Rockwood Capital has sold a 15-acre office campus in Sunnyvale, California for $290.7 million, according to a Wednesday announcement.

The deal marked the first Silicon Valley purchase for Tristar Capital, a New York-based private real estate firm. Tristar’s president said the firm will continue to look for opportunities in the technology-focused area.

San Francisco-based Rockwood bought the 350,000 square foot property, located at 410, 420 and 430 North Mary Avenue, in December 2010 from Jay Paul Company, a San Francisco-based private investor, for $122.4 million, according to data provider Real Capital Analytics. Capital for Rockwood's purchase came from a core-plus separate account on behalf of an institutional investor, PERE understands. Rockwood acquired the campus at 77 percent occupancy and then fully leased the space to consumer technology giant Apple.

“Our successful lease-up and re-tenanting of this Class A property is a testament to Rockwood Capital’s investment strategy,” Andrew Blanchard, a Rockwood managing director, said in Wednesday’s statement. “We focus on acquiring high-quality, well-located real estate in knowledge-based markets that have the potential to outperform. Silicon Valley is a market that we know well and will continue to be active in going forward.”

JLL brokered the off-market deal.

“Over the past several years we were able to create an attractive and durable income stream at this property that we believe will continue to benefit Tristar going forward,” said Michael Hegseth, a vice president at Rockwood.

Rockwood manages about $8.8 billion in assets, according to its website. Last month, the firm closed its latest value-added fund, Rockwood Capital Real Estate Partners Fund X, on $1.1 billion, PERE previously reported. In the fund series, the company focuses on assets with the potential for income growth through repositioning, re-leasing, rehabilitation or development. Rockwood is targeting a 12-14 percent net internal rate of return for the vehicle.