SANTA CLARA — Texas real estate investors have grabbed a big tech center in Santa Clara, paying more than $100 million to buy a four-building complex that is completely leased up, according to a regulatory filing.
The research and tech complex that has been purchased by an investment unit of real estate firm Hines includes Comtech and Intevac among its tenants.
“We’re excited to further diversify our global portfolio and provide our investors with exposure to a well-located, strategic asset in the dynamic Silicon Valley market,” said Janice Walker, chief operating officer with Hines Global Income Trust.
Houston-based Hines paid $107.1 million for the tech center, a regulatory filing with the Securities and Exchange Commission states.
The seller was a group led by DRA Advisors, which had bought the Santa Clara site in 2015 as part of a portfolio of a big portfolio of Silicon Valley properties
The buildings that the Hines affiliate bought total 417,000 square feet and are leased to 10 tenants. The property is described as a research and light manufacturing center.
The transaction is a reminder that savvy investors continue to hunger for Silicon Valley commercial properties despite the economic uncertainties ushered in by the coronavirus. The property purchase was completed on Aug. 31, the SEC filing disclosed.
The just-purchased property is close to big tech companies as well as the Silicon Valley labor pool of technology talent, Hines said.
Research and development spaces of this kind that also accommodate light manufacturing are in demand these days, according to Hines executives.
“We believe in the long-term supply and demand fundamentals of this product type, which have proven to be resilient” despite the economic uncertainties, said Sam Cheikh, a managing director in the Bay Area office of Hines.