As tech layoffs continue to rip through Silicon Valley, a five-building, 449K SF Mountain View office complex has been returned to its lender.
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San Francisco-based TMG Partners and Goldman Sachs handed the keys to 350-380 Ellis St. to lender KKR Real Estate Finance Trust, an affiliate of KKR & Co. Inc. of New York, according to The San Jose Mercury News.
The property lost two-thirds of its value since the partnership paid $357.6M to buy the asset in 2021, the Mercury News reported. KKR acquired the property for $120.6M in a deed-in-lieu of foreclosure, based on documents filed July 2 with Santa Clara County.
“The new ownership and appointment of TMG positions 350 Ellis to invest in delivering a next-generation workplace with collaboration and innovation at its core,” TMG said in a June press release.
LEASES
In a vote of confidence for San Francisco, online education company Udemy renewed a 59K SF lease for office space at 600 Harrison St. in Rincon Hill for five years, according to the San Francisco Business Times. The office serves as Udemy’s HQ.
Savillis represented Udemy in its transaction with San Rafael-based owner Pell Development Co.
SALES
Bridge Investment Group Holdings teamed up with Bridge Workforce Funding to buy a 418-unit apartment complex at 81 Mayhew Dr. in Walnut Creek for $101M, or about $241.6K per unit, The Real Deal reported. Seller and developer Boswell Alliance Construction of Walnut Creek built the asset in 1964.
The transaction paves the way for the Salt Lake City, Utah-based investment partners to develop a workforce housing project for families of firefighters, police officers, teachers and healthcare workers earning less than 80% of area median income.
DEVELOPMENTS
An apartment tower that would radically change Berkeley’s skyline moved closer to breaking ground near the University of California, Berkeley campus. Berkeley’s Design Review Commission gave The Hub, a 26-story, 456-unit high-rise in South Berkeley, its stamp of approval earlier this month, the Business Times reported.
If approved, the 285-foot-tall tower with 15K of commercial space, including a rooftop restaurant, would be the tallest building in Berkeley. Developer Core Spaces of Chicago also plans to set aside 40 units for affordable housing.
FINANCING
Affinius Capital LLC has originated $120M in financing to complete the development of the largest industrial development in Silicon Valley, the 636K SF Edenvale Business Park. JLL arranged the financing.
Hines is developing the three-building, LEED-certified project at 550-650 Piercy Road in South San Jose, slated for delivery in Q3. The submarket is a magnet for advanced manufacturing companies.
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