San Francisco, CA, February 2019 – Graymark Capital, Inc., in partnership with a major real estate private equity fund, has acquired a 78,623 square foot single tenant R&D building for $45.25 million.
785-787 N. Mary Avenue is a two-story R&D property located in the Peery Park submarket of Sunnyvale, CA with direct access to Highways 101 and 237. The property was constructed in 1980 and subsequently modified to an open floor plan with an R&D component. Sitting directly across from Irvine Company’s future 1.3 million square foot Pathline Park project, the project benefits from the new Peery Park Specific Plan designed to increase density and attract major technology firms to the area. The property is 100% leased to a leading global technology tenant based in Silicon Valley. Other major tenants in the Peery Park submarket include LinkedIn, Mercedes, Nokia, Volvo, Synopsis, Proofpoint and Corning.
The project was purchased under Graymark’s Medium Term Lease Program, which focuses on well-located infill office/R&D/industrial assets leased to creditworthy tenants. This property was an appealing investment for Graymark due to the quality of the asset, strong tenant credit, discount to replacement cost and excellent market fundamentals. 785-787 N Mary is Graymark Capital’s 12th project in Silicon Valley.
“The location fits our criteria of being near a highly-educated workforce which attracts Fortune 500 tenants,” said Brian Hecktman, Graymark Capital’s chief executive officer. “In this case, we are within miles of major campuses for the largest technology firms in the world.”
The property was purchased in an off-market transaction with an investor who had owned the property since 1990. We thank Tucker Beim with Cushman & Wakefield for his assistance with this transaction.
About Graymark Capital
Graymark Capital, Inc. is a real estate investment firm headquartered in San Francisco, California that invests in commercial properties throughout the West Coast. The company has acquired 2,000,000 square feet of institutional quality property valued at over $600 million since 2012. Founded by CEO Brian Hecktman, with COO/CFO Jeff Hoppen and SVP of Acquisitions Rick Lafranchi, the company focuses on opportunities where it can create significant value by active asset management and repositioning. Graymark invests in assets with a modern design that appeal to today’s tenants that are located in infill markets on the West Coast with a highly-educated workforce, strong employment growth and attractive quality of life.