Real estate investment firm Behringer Harvard has acquired the Santa Clara Tech Center, a three-building complex on 22.8 acres in Santa Clara. Behringer Harvard paid $70 million for the property, which it called "one of the most desirable locations for data centers in the Silicon Valley." The complex includes facilities located at 700, 750 and 800 Central Expressway, which total 456,000 square feet of space.
The deal reflects real estate investors' growing interest in the data center sector, and especially the opportunities provided by conversions of existing industrial properties into premier data centers.
Two of the buildings at Santa Clara Tech Center are leased to Hitachi Data Systems, Japan's largest electronics company. Behringer Harvard plans to convert the third building, 800 Central Expressway, into a data center to capitalize on strong demand for data centers in Silicon Valley. A previous tenant made "extensive interior and exterior improvements" that will aid the conversion process, the company said.
A major beneficiary of the deal will be the Silicon Valley Community Foundation, a charitable organization whose real estate trust owns two of the three Tech Center buildings, according to the San Jose Business Journal. The park's initial developer, Sobrato Development Cos. donated the two buildings (one of the Hitachi sites and the development property, totaling roughly 303,000 square feet), to the community foundation.
"With its campus-style environment, flexible floor plans, ample surface parking and proximity to numerous amenities, Santa Clara Tech Center is positioned for strong investment performance," said Robert M. Behringer, founder and CEO of Behringer Harvard. "These three properties are an excellent complement to our real estate portfolio."
The Santa Clara Tech Center properties were acquired by Behringer Harvard Opportunity REIT I, Inc., which also owns equity and debt investments in assets located in Texas, Nevada, Minnesota, Massachusetts, Missouri and Virginia.
Behringer Harvard is an integrated commercial real estate company based in Dallas.