Menlo Park — A half-century-old office building chosen as the technology and venture capital hub for Menlo Park’s Silicon Valley was heavily acquired by a veteran Bay Area real estate company.
According to a document submitted to the San Mateo County Recorders Office on June 8, Ellis Partners and the New York State Common Retirement Fund worked through affiliates to work together to pay $ 62.7 million to an office building on 200 Middlefield Road.
Jason Morehouse, Partner and Chief Investment Officer of Ellis Partners, said:
Pension fund giant Teachers Insurance & Annuity Association of America has sold a total of 43,100 square feet of buildings, county documents indicate.
The deal suggests that even after the coronavirus pandemic, many investors have not yet resolved their thirst for owning office buildings in Silicon Valley’s major job hubs.
According to public property records, Ellis Partners’ affiliate EPNY Middlefield received a $ 21.7 million loan from Nationwide Life Insurance at the time of purchase.
Ellis Partners paid about $ 1,455 per square foot for a boutique office building.
This price per square foot is one of the highest value ever for office space in Menlo Park, a popular Bay Area job hub.
The office building was originally built in 1967 as the Mills Building. The building was completely renovated in 2012.
Brokers Stephen Golbuchik, Edmund Najera, Jonathan Chefler, Darren Holak and commercial real estate company Newmark have arranged the purchase of real estate.
In 2019, the New York State Common Retirement Fund, a pension fund, said it has contributed $ 200 million to a fund called EPNY Ventures I managed by Ellis Partners.
“With a very comfortable courtyard, the finest finishes and a higher parking rate than the market, this building has proven to be attractive throughout the market cycle,” says Morehouse.
The office building also has a large courtyard totaling 5,800 square feet, and Ellis Partners states that it was an important component of the workplace during the coronavirus era.
According to Ellis Partners, this building is 87% rented. According to Google Maps, venture capital, private equity operations and software companies are included in the building’s tenants.
“We look forward to working with current and future tenants as the office sector continues to recover and evolve after the pandemic,” says Morehouse.