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TA Realty snaps up Sunnyvale office/R&D building for $14.4M
Silicon Valley/San Jose Business Journal, 1/27/2012

TA Associates Realty is continuing its buying spree in Silicon Valley.

The Boston-based real estate investment firm recently closed on its seventh acquisition in Silicon Valley since 2010, buying an office/R&D building on 1120-1130 Kifer Road in Sunnyvale for $14.4 million.

As was the case in some of TA Realty’s previous purchases in the region, the single-story, 100,400-square-foot building was not on the market, said Kalil Jenab of Cassidy Turley, who represented TA Realty, along Nick Lazzarini of Cassidy Turley.

Jenab and Lazzarini approached the seller, Roeder Family Partnership LP, with a “compelling” unsolicited offer that was ultimately accepted, Jenab said.

The building, which sits on eight acres, is more than 50 percent leased to the Art Institute. TA Realty is planning to do a major interior and exterior facelift on the vacant portion of the property, Jenab said.

Jenab and Lazzarini are currently marketing the remaining 46,876 square feet for lease at $1.25 per square foot pre-renovation.

“Once we do the market-ready work, the price will go up accordingly,” Jenab said.

TA Realty has been one the most active investment buyers of Silicon Valley property in the past six years, claiming more than two dozen buildings as part of individual or portfolio transactions. The firm generally prefers off-market deals.

In Silicon Valley it has acquired: two R&D buildings in Sunnyvale totaling 104,498 square feet; two industrial properties in Milpitas totaling 100,368 square feet; a 57,310-square-foot and a 34,383-square-foot R&D building in Sunnyvale; a 55,944-square-foot R&D building in Santa Clara and a 117,730-square-foot office and R&D building in North San Jose.

The company is reportedly in the market to raise up to $1.25 billion for a new investment fund that targets under-performing commercial properties.

According to its website, the firm manages 96 million square feet of commercial real estate and 8,900 residential units. It boasts an average investment size in the $20 million and $30 million range.