January 1, 2017
The Massachusetts Pension Reserves Investment Management (PRIM) Board and the Santa Clara Redevelopment Authority closed on the acquisition of 21 acres and a related ground lease in Santa Clara, CA for $112.25 million.
The purchase represents the PRIM Board’s first direct investment in real estate, and is expected to result in millions of dollars in long-term investment fee savings. PRIM’s Michael G. Trotsky says, “By purchasing and owning this land directly rather than through an investment manager, PRIM stands to save approximately $11 million in investment-management fees over the next 20 years.”
The three Class A, 5-story office buildings, built in 2013, total 449,000 square feet. The assets are leased to high tech companies, including Dell Inc. and Arista.
DivcoWest brought the investment opportunity to PRIM and served as an advisor on the purchase.
For comments, questions or concerns, please contact Dennis Kaiser