Hellyer Oaks Technology Park

San Jose, CA

Address:   5215 & 5225 Hellyer Avenue, San Jose, CA

Year Built:   1985 & 1986

Building SF:   347,434 SF

Purchase Price:   $36 million

Closing Date:   February 23, 2017

Projected Hold Period:   2.5 years

Highlights

Vertical Ventures acquired building at a 7.5% cap on in-place income at a major discount to replacement cost with significant value-add potential.
  • Executed 45,000 sf of leases with three tenants in first six months of ownership, Increasing building occupancy from 57% to 72%.
  • Invested over $6 million in capital to address leasing and renovation plan which include new lobbies, corridors, restrooms, roof, gym, building management office which stabilized the property and increased rental rates by 25%.
  • Increased occupancy to nearly 85% after 18 months of ownership.
  • Refinanced the property and returned all investor equity within the first 25 months of ownership.

OVERVIEW

43%

Projected IRR

2.1 X

Equity Multiple

2.5 years

Hold Period