California Medical Facility Sells for Almost $30M

by Evelina Croitoru

18735 Madrone Parkway, Morgan Hill, Calif.

Morgan Hill, Calif.—San Mateo, Calif.-based privately owned diversified investment firm Nazareth Enterprises Inc. secured  the purchase of a 152,553-square-foot medical device manufacturing facility in Morgan Hill, Calif., for the price tag of $29.8 million. At the time of the deal, the facility was 100 percent leased by Paramit Corp. and serves as the company’s headquarters and research/development operations.

Located at 18735 Madrone Parkway, in the San Jose-Sunnyvale-Santa Clara MSA in Santa Clara County, the property is situated on 10.44 acres and was developed in 2002 as a build-to-suit building for Paramit Corp. The asset features concrete construction, solar power, four dock doors and ample parking with extensive renovations completed in 2014.

“This asset was highly sought after because of its headquarters, mission critical use for the tenant. While we received interest from all types of investors in multiple regions of the country, ultimately the Seller selected an experienced local, private company who understands the market and the criticality of the property for the tenant moving forward,” Zachary Harris, associate director with Stan Johnson Co.,  said in prepared remarks.

“Financing was provided by Bank Leumi due to their ability to be creative in structuring debt to meet their clients’ needs and their ability to consistently deliver for us on multiple occasions in the past,” Mounir Kardosh, president & CEO of Nazareth Enterprises Inc., said in a prepared statement.

The undisclosed buyer was represented by Abe Matar, owner of Landmark Real Estate Services. The seller, a private equity firm, was represented by Jeff Hughes, Zachary Harris and Jonathan Ameen with Stan Johnson Co.  According to Property Shark data, the property traded for a significantly lower purchase price than the previous sales registered in the asset’s history, dropping in value with approximately $4.7 million since the last transaction in February 2014.

Image courtesy of user:Vista Solar, via Google Maps