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San Francisco

Tristar Capital Completes Acquisition of Class A Office Campus in Silicon Valley

JLL arranges sale of three fully-leased buildings for $291 million


​​​​SAN FRANCISCO, February 22, 2017Tristar Capital added to its growing office portfolio with the purchase of the Class A office campus at 410,420 and 430 North Mary Avenue in Silicon Valley. Tristar Capital purchased the campus, which is located in Sunnyvale and is fully-leased to a leading tech company, from Rockwood Capital, LLC ("Rockwood Capital") for a total of $290.7 million.

410_430 north mary.jpgThis is Tristar's first acquisition in Silicon Valley, coming off of recent purchases of Class A office buildings in the South Lake Union submarket of Seattle. Tristar's growing, tech-driven office holdings now total nearly 1,000,000 square feet between the two markets, with several additional acquisitions slated for the second quarter of 2017.

"We believe in the long-term viability of the technology sector and the communities in which they operate," said David Edelstein, President of Tristar Capital. "We will continue to look for value opportunities in Silicon Valley as well as other tech-centric markets across the country."

JLL's Bay Area Capital Markets​ team, including Managing Directors Erik Doyle and Will Connors, and Vice President Nicole Zanghi, led the off-market transaction. With limited Class A product available, this sale highlights the continuing allure to investors of prime assets in Silicon Valley, which was named one of the top three markets in the world for long-term resiliency in JLL's recently released "City Momentum Index."​

"The recent renovations completed by Rockwood Capital and Dostart Development Company, combined with additional investment by the tenant, add significant value to these assets in a key location for some of the top tech tenants in the world," said Doyle.  "Tristar was eager to plant a flag in the Silicon Valley market, and this campus, which has a number of high-profile corporate neighbors, presented the perfect opportunity for them to establish a presence."

Situated on a 15-acre site, the three building campus totals 349,758 rentable square feet.  The development was initially completed in 1990 and has undergone significant renovations in 2008 and 2010, as well as more recently when a tenant signed on to occupy all three buildings.

"Our successful lease-up and re-tenanting of this Class A property is a testament to Rockwood Capital's investment strategy," said Andrew Blanchard, Managing Director at Rockwood Capital.  "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."

Michael Hegseth, Vice President at Rockwood Capital, added, "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."

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About Tristar Capital

For more than three decades, New York-based Tristar Capital has developed and maintained an expansive portfolio of real estate holdings in major metropolitan markets including New York City, Miami, Seattle and Las Vegas. Led by David Edelstein, the company's holdings include hotel, office, retail and mixed-use properties. Within its portfolio, Tristar has developed high rise condo developments in Manhattan, high street retail projects including Lincoln Road pedestrian mall in Miami Beach and Miracle Mile Shops in Las Vegas, adaptive reuse projects in Wynwood in Miami and the W South Beach Hotel and Residences.

About Rockwood Capital

Rockwood Capital, LLC is a real estate investment management firm, founded in 1995 that provides equity capital combined with real estate operating expertise for repositioning, recapitalization, development and redevelopment of retail, hotel, residential, office and research and development space in key markets throughout the United States.  Rockwood and its principals have invested on behalf of their clients approximately $23.2 billion of real estate through ten value-add vehicles and eight separate accounts.  Today, Rockwood is an 82-person real estate investment firm with offices in New York, NY, San Francisco, CA, Los Angeles, CA, and Seoul, Korea that manages a portfolio of approximately $8.8 billion of real estate value.  Rockwood's investors include public and private pension funds, endowments, foundations, insurance companies, fund of funds, high net worth individuals and family offices. 

Learn more at http://www.rockwoodcap.com.

About Dostart Development Company

Dostart Development Company, LLC ("DDC") is a Palo Alto based commercial real estate developer with more than 25 years and 2.8 million square feet of experience developing, redeveloping and investing in high quality office projects in Silicon Valley and the San Francisco Peninsula.  DDC has been a leader in Transit-Oriented Development ("TOD") and sustainable design, including the first LEED-designed office shell in Palo Alto, the first TOD projects in Mountain View and in Sunnyvale, and DDC is currently developing the first LEED Platinum office development in Redwood City.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, of real estate assets, and completed sales, acquisitions and finance transactions totalling approximately $136 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management had $60.1 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.