April 24, 2013 Leave a comment
By Natalie Dolce
GlobeSt.com exclusively learns that Synaptics Inc. has sold 3120 Scott Blvd. and will lease back the building on a short term basis before expanding to its new headquarters. The buyer of the off-market acquisition was Orchard Partners, an owner and operator of office, R&Dand industrial assets, and a real estate investment fund managed and advised by affiliates of Apollo Global Real Estate Management LP.
While sources involved couldn’t confirm pricing to GlobeSt.com at this time, an unidentified industry source tells GlobeSt.com that it traded for approximately $13 million.
Orchard and Apollo plan an extensive, “market ready” improvement program that will start when the building becomes vacant in early summer. The proposed work includes a new, three story lobby, creation of modern, open floor plans on each floor, extensive re-landscaping and construction of an outdoor amenity area for employees.
The three-story, steel frame building features a continuous glass line with a striking architectural profile, according to a prepared statement. The property, which offers both underground and surface parking, is situated near the intersection of Highway 101 and San Tomas Expressway, providing “convenient access from all parts of Silicon Valley.”
According to Mike Biggar, managing partner of Orchard Partners, “The profile of this transaction fits our value-add investment strategy perfectly. We see an excellent opportunity to reposition a basically sound building to become a headquarters-quality facility in a very strong market segment.”
The Santa Clara market continues to be a top location for Silicon Valley technology companies, with recent and planned growth by companies such as NVIDIA, Palo Alto Networks and Service Now, all within close proximity to 3120 Scott. Other companies in the neighborhood include Intel, EMC, Huawei and Applied Materials.
“We are pleased to acquire another off-market asset in a market that we know extremely well,” Biggar adds. “Going forward, we will continue to target value-add office/R&D assets in the Bay Area as well as stabilized, high quality industrial properties throughout the country.”
The buyer and seller in the transaction were represented by Jim Maggi, Dave Vanoncini, andJimmy Cacho of Kidder Mathews. The leasing assignment also will be handled by the Kidder Mathews team, as well as Christian Marent and Rob Shannon of CBRE.
Read Globe St article here.