Peninsula Land Scoops Up Seven-Building R&D Portfolio

A seven building R&D/flex portfolio totaling 585,478 square feet across San Jose, Fremont and Milpitas recently sold to Peninsula Land and Capital. At the time of the sale, the portfolio was 94 percent leased to seven tenants with a weighted average lease term of approximately 7.6 years.

The existing tenant roster includes Hummingbird Energy Storage, Enovix Corporation, Nanosys, Optovue Inc., BriteLab and Applied Engineering. It is anchored by BAE Systems, which occupies more than 160,000 square feet.

Scott Prosser, Joe Moriarty and Jack DePuy of CBRE represented a fund managed by DRA Advisors in the portfolio sale.

“This was a great opportunity for a fund managed by DRA Advisors to sell seven buildings in one transaction and for Peninsula Land and Capital to acquire a highly desirable R&D/flex portfolio in Silicon Valley,” said Prosser.

Silicon Valley’s R&D market is one of the most supply-constrained markets in the nation. The overall R&D vacancy rate at the end of the first quarter of 2021 was 10.1 percent and has been at or below 10 percent for the past 26 quarters.