Selected Transactions
300 Pioneer Way
Mountain View, California
Opportunity. 300 Pioneer is a single story 14,500 sq ft concrete tilt up manufacturing building that is in a highly desirable area of Mountain View. The building was empty as the tenant had moved their wood door making operations to the Sacramento area to reduce costs. We saw the opportunity to reposition the building to a more desirable use that would require renovation and then hold as a long-term investment due to the strong market in the Pioneer Way area.
Investment. The asset was acquired in March 2021, the start of the worldwide pandemic. We immediately put the property on the market for lease at $5.00 per sq ft NNN. We soon discovered that there was no rental demand due to the worldwide conditions. We had initially planned to reposition the building to an office/ R&D building but all of the office/ R&D buildings in Mountain View suddenly became empty and we did not want to enter a market with an overwhelming supply of empty space. So we renovated the building into a fully air conditioned industrial building that could attract tenants that could provide supplies or assistance to the pandemic, fulfilment center tenants that were rapidly growing due to the lock down, robotics companies or a warehouse use. We found a tenant to lease the entire building in March 2022. Our vision for the future of the building was correct in finding a robotics tenant, Fulfil Solutions Inc. The tenant improved the building interiors into one of the most advanced robotics buildings in the Silicon Valley. Fulfil Solutions Inc is one of the fastest growing AI companies in the bay area and has been in the building for two years with lease term remaining.
3330 Hillview Avenue
Palo Alto, California
Opportunity. 3330 Hillview Avenue is a 15,000 SF one story bio tech lab building on a ground lease in the Stanford Research Park, Palo Alto, California. The owner of the property had recently died and his family wanted to dispose of the asset as quickly as possible. Haury saw the opportunity to purchase this asset at favorable price, redevelop the parcel and hold as a long term asset.
Investment. The asset was acquired n July 1997 for $1.5 million ($100 sf) with an existing tenant having three years remaining on its lease. In May 1998 the tenant notified Haury that it would vacate the property upon expiration of their lease. Haury commissioned plans for a new $6.5 million, 32,000 sq ft facility to be built on the site. In April 1999 Haury secured building permits, negotiated a lease termination with the existing tenant and secured a lease with a new tenant at $4.75 NNN for 15 years with annual escalations of 3.0%. Upon completion of construction in March 2000, the new tenant occupied the facility. Since acquisition the property has presented cash flows after debt service of over $10 million.
The Metropole 35-39 South Market Street
San Jose, California
Opportunity. 35-39 South Market Street is a 24,000 SF two story office building built in the 1890’s in San Jose, California. The property had been recently foreclosed, was vacant and decrepit. Haury saw the opportunity to purchase this asset at favorable price, provide a historical renovation and sell to either an investor or new owner/user.
Investment. The asset was acquired in March 1997 $800,000 ($33 sf). Haury created and managed a joint venture providing 5% of the required capital. In January 2000 the venture invested an additional $250,000 to secure permits for the renovation. In January 2001 Haury secured $6.5 million to finance the renovation and lease up. In March 2001 Haury secured a 10 year lease at $2.75 NNN for 10 years with annual escalations of 3.0%. In March 2004 Haury sold the property to an investor in a transaction valued at $11.7 million, including approximately $1 million in tax credits, ($488 sf) yielding a 47% return. The project received the 2002 Golden Nail award, presented to the best renovated project in San Jose.
Northport Business Park
Fremont, California
Opportunity. Northport Business Park originated from 20 acres of vacant parcel entitled for 275,000 sf located in Fremont, CA. The institutional owner was seeking to reduce inventoried land in its portfolio. Haury recognized an improving economic cycle with decreasing office vacancies and purchased this asset at a favorable price with the intent to develop the land, lease up and sell.
Investment. The asset was acquired in June 1995 $4.0 million ($4.60 sf). Haury established and managed a joint venture to acquire the asset, providing 25% of the required equity. Within six months of acquisition Haury began construction on two 50,000 sf single story buildings financed with $7.5 million provided by our capital partner. Both buildings were fully leased and occupied within nine months from start of construction. In July 1996, using $13 million provided by our partner, Haury began construction on a pre-leased 125,000 sf building and a 50,000 sf spec building which was leased within nine months of construction. Monthly rent for the entire project after lease up averaged $1.30 sf NNN. In September 1996 Haury sold its 25% interest in the property to its partners in a transaction valued at $32.0 million yielding a 31% return.
425 National Avenue
Mountain View, California
Opportunity. 425 National Avenue site originally comprised of two 10,000 sq ft vacant industrial buildings. The seller was an industrial user that had downsized their business. Haury saw this site as a redevelopment opportunity in a market that was undergoing transformation to higher and better office uses. The location offered close proximity to Hwy 101 in an area that did not have the congestion just to the North of the property.
Investment. Haury acquired the property in July 1999 for $2,000,000 and developed plans for a new high image 35,000 sq ft two story Office/R&D building. The concrete tilt up construction building was designed by RMH and provided free flowing interiors that allowed the building to house three separate tenants with separate entry’s and exits. Construction was completed in July 2000. Upon completion of construction Haury sold the property to an investor.
2800 Bayview Drive
Fremont, California
Opportunity. 2800 Bayview Drive is a 60,000 sf two story office R&D building in Fremont, California. The property had been recently foreclosed, was vacant and showed poorly due to lack of attention from the former owner who business went bankrupt. Haury saw the opportunity to purchase this asset at favorable price, reposition and sell to either an investor or new owner/user.
Investment. The asset was acquired in August 1994 for $2.5 million ($42 sf). Haury created and managed a joint venture providing 25% of the required capital. Soon after the acquisition the venture invested an additional $250,000 to renovate the interior and exterior of the building in order to attract a new tenant. In August 1995 Haury secured a lease providing monthly rent at $0.75 NNN for 7 years with annual escalations of 3.0%. In September 1996 Haury sold its 25% interest in the property to it partners in a transaction valued at $5.4 million yielding a 116% return.
3745 North First Street
San Jose, California
Opportunity. 3745 North First Street is a 70,000 sf single story office R&D building in San Jose, California. The property was purchased from an owner/user occupying 50% of the facility with an agreement to vacate immediately after close of escrow. Haury saw the opportunity to purchase this asset at favorable price, lease up and sell to an investor.
Investment. The asset was acquired in August 1996 for $5.5 million ($79 sf). Haury created and managed a joint venture providing 5% of the required equity capital. After the acquisition the venture marketed the vacant 35,000 sf portion of the building for lease. In January 1997 Haury secured a 7 year lease with the existing tenant in the facility at $1.25 sf NNN with annual escalations of 3% for the entire facility. In September 1997 Haury sold the property for $10.5 million ($150 sf) yielding a 91% return.
850 Shoreline Blvd
Mountain View, CA
Opportunity. 850 Shoreline Blvd facility is a 30,000 sf single story Office/ R&D building that was owned by a retired developer. The tenant was consolidating its facilities and was in the process of vacating the building. The building was 25 years old and showed the need for an updated exterior facade. The interiors were comprised of worn carpets and many private offices with dark corridors. Haury recognized the opportunity to purchase a good location at a good price, update the building to attract a good tenant and sell to an investor.
Investment. The building was acquired in January 1999. The landscaping was upgraded, the exterior building paint scheme was modernized. The interior offices were gutted and perimeter offices with open office landscaping built out. Three large running track skylights were installed in the interior of the facility to provide natural light to the interior office space. Attractive new carpet and paint was provided throughout the facility. The building was market ready within four months of acquisition. Within six months of acquisition Haury secured a lease from a strong tenant with an initial seven year term . The tenant occupied the facility three months later. This project was held for ten years and was sold to an owner/user in 2009.
47329 Kato Road
Fremont, California
Opportunity. 47329 Kato Road is a 60,000 SF partial two story office R&D building in Fremont, California. The property was for sale by an owner/user that vacated the property and moved its operations. The facility showed poorly because it had been left in disarray upon vacating. Haury saw the opportunity to purchase this asset at favorable price (50 sf), renovate, re-lease and sell to either an investor or new owner/user.
Investment. The asset was acquired in September 1996 for $3.0 million ($50 sf). Haury created and managed a joint venture, providing 50% of the $800,000 equity required and borrowed $2.2 million to finance the acquisition. After the acquisition the venture invested an additional $100,000 to renovate the interior and exterior of the building in order to attract a new tenant. In September 1997 Haury secured a seven year lease providing monthly rent at $1.15 NNN with annual escalations of 3.0% and $1.5 million ($25 sf) tenant improvement allowance. In December 1997 Haury sold the property to in a transaction valued at $8.9 million ($148 sf) yielding a 93% return.