BNY Mellon Investment Manager Sees Growing Demand for Manufacturing Space
Plymouth Meeting, PA, March 5, 2013 — URDANG, the real estate manager for BNY Mellon, and its joint venture partner CapRock Partners have announced the sale of a 238,000 square-foot Class A industrial building in Newark, CA, a city on the edge of Silicon Valley, for $22.1 million.
The property was sold to Mitac Information Systems Corp, a U.S.-based division of Taiwanese MiTAC International with core competencies in electronics manufacturing services, for $93 per square foot.
Urdang and CapRock gained control of the property by acquiring a non-performing note directly from a publicly traded bank in June 2011 for $41 per square foot or $9.8 million, representing a significant discount to the unpaid principal balance. At the time of acquisition, the original borrower had filed for bankruptcy. Urdang and CapRock successfully took title to the property in March 2012 through a foreclosure. Urdang’s portion of the investment was made through a comingled fund for institutional investors managed by Urdang Capital Management, Inc.
“We purchased the note at an attractive price and believed the property would appeal to multinational companies such as MiTAC seeking space in the East Bay area near San Francisco,” said Cyndi Thomas, vice president, Urdang Capital Management. “There is growing demand for large manufacturing and warehousing facilities as multinational technology firms expand aggressively and attract suppliers to the region.”
“The acquisition of the non-performing note presented a unique opportunity to obtain title to a premier industrial asset in the San Francisco Bay area at a steep discount to replacement cost,” said Jon Pharris, a principal at CapRock.
The building, located at 39889 Eureka Drive, was built in 2008 to serve as a corporate headquarters, manufacturing, and warehousing facility. Features include manufacturing and warehousing space with ceilings 30 to 32 feet high, a commercial grade kitchen, an employee cafeteria, nearly 40,000 square feet of space, and a fenced yard.
Greg DeLong and Chip Sutherland of CB Richard Ellis represented Urdang and CapRock Partners, while Joe Kelly and Rob Shannon of CB Richard Ellis represented the Buyer.
CapRock Partners invests in high quality non-stabilized California industrial real estate with a primary focus on Southern California and the greater Silicon Valley. CapRock’s core platform focuses on strategic acquisitions and pro-active asset management of institutional quality multi-tenant buildings, business parks, vacant buildings, partially occupied buildings and non-performing notes throughout California. The principals at CapRock have acquired or developed over 9,000,000 square feet of commercial property and over 6,000 acres of land totaling more than $1.8 billion of real estate.
Founded in 1987 with an exclusive focus on institutional investment grade real estate, URDANG offers a variety of strategies and products, managing approximately $6.4 billion in public real estate securities through Urdang Securities Management, Inc. and approximately $2.3 billion (gross) in debt and private equity real estate investments through Urdang Capital Management, Inc. for institutional investors and high net worth individuals throughout global markets and across public and private capital sectors. URDANG’s research-driven process combines top down economic analysis and market/country selection with bottom up underwriting of properties, companies and management teams to seek high, risk-adjusted returns. It is one of the investment boutiques of BNY Mellon Investment Management.
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.4 trillion in assets under management. It encompasses BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 36 countries and more than 100 markets. As of December 31, 2012, BNY Mellon had $26.2 trillion in assets under custody and/or administration, and $1.4 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.
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