Equus Capital Sells Silicon Valley Assets for $42M

Walsh Bowers. Image courtesy of Equus Capital Partners Ltd.

An affiliate of GI Partners, a San Francisco-based private investment firm, has acquired a two-building office/R&D portfolio totaling 108,459 square feet in Santa Clara, Calif., from Equus Capital Partners Ltd., for $41.5 million.

The sale of the Walsh Bowers portfolio was made on behalf of Equus Investment Partnership X, LP (Fund X) a $361 million discretionary equity fund managed by Equus.

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Equus, a private equity real estate investment management firm based near Philadelphia, acquired the properties at 2845-55 Bowers Ave. and 2710 Walsh Ave. in Silicon Valley’s highly sought after “Golden Triangle” in early 2017 from Swift Real Estate Partners for $32 million. The combined parcels total 6.31 acres and are bordered by Highway 101, Interstate 880 and California 237, which provides excellent regional access throughout Silicon Valley. The properties, built in 1975 and 1980, have convenient access to both San Francisco and Oakland, Calif., and are less than 5 miles to the Mineta San Jose International Airport. The portfolio is also a 10-minute drive to Levi’s Stadium and Santa Clara Convention Center and 1.3 miles from the Lawrence Caltrain station.

Robert Butchenhart, vice president for Equus and manager of Equus’ West Coast office in Los Angeles, told Commercial Property Executive both assets were fully leased. He said 2710 Walsh Ave. has one tenant and 2845-55 Bowers Ave. has two.

Butchenhart said in prepared comments the firm envisioned the portfolio as a classic “covered land play” when it acquired it in 2017 and has maintained short-term occupancy to make it easier for a new owner to redevelop the properties and capture significant density upside.

Tim Guarnieri of Newmark represented GI Partners. Eric Fox, Steve Hermann and Seth Siegel of Cushman & Wakefield represented Equus in the transaction.