Silicon Valley Business Journal / January 12th, 2015
Silicon Valley Business Journal reports: An Invesco Real Estate affiliate purchased a 49 percent stake in the acclaimed 12-acre complex in Menlo Park, Sand Hill Commons, at an unconfirmed and record-shattering price of $1,800 per square foot. At 133,000 square feet, the total value would be close to $240 million.
Ben Thypin, director of market analysis for Global commercial real estate data and analytics firm Real Capital Analytics (RCA) in New York said that, “Indeed, the per-square-foot value would be a national record for suburban office deals larger than 50,000 square feet. The properties that have traded at higher per-square-foots are less than 50,000 square feet and in places like Beverly Hills, and have substantial retail components, whereas this is a pure office property.”
The property also has a history of price heights; Clarion bought the existing 51 percent stake at $1,000 per square foot back in 2006. The initial cap rate for this transaction is expected to be around 6 percent, compared average cap rates from third quarter 2015 for the San Francisco metro area at 4.8%.