A fund managed by a subsidiary of Ares Management Corporation acquired an industrial park in San Jose that’s next door to an Amazon delivery station for about $95.8 million, the highest price paid for an industrial asset in the city this year.
Dubbed the Little Orchard Center, the four-building complex at and around Little Orchard Street and Stauffer Boulevard is 96 percent leased to 16 different tenants, Gregg Boehm, a managing director in the Ares Real Estate Group, told The Real Deal on Monday. “We have always liked the Silicon Valley market and believed this was a great opportunity to acquire an infill, functional industrial park in a desirable area that we believe is very hard to replicate,” Boehm said in an email.
The complex totals 276,660 square feet, according to Old Republic Title and First American Title records, and is immediately adjacent to a 212,840-square-foot warehouse and distribution center that’s fully leased to Amazon.com Inc. The e-commerce giant reportedly uses the building at 1710 Little Orchard St. as a delivery station, where Amazon orders are prepared for last-mile deliveries.
Ares Management Corp. is an alternative investment manager that operates businesses in the credit, private equity, real estate and secondary markets, according to its website. The company’s real estate group had about $33.4 billion of assets under management as of June 30. On July 1, Ares Management completed its acquisition of Black Creek Group’s U.S. real estate investment advisory and distribution business. Black Creek, a real estate investment management firm, specializes in the industrial real estate sector. Its industrial platform has purchased or built more than $23.3 billion worth of properties across the United States since its inception in 1993, according to a July 1 news release.
The seller in the Little Orchard Center sale was an affiliate of Stockbridge Capital Group, according to a deed record filed with the Santa Clara County Clerk-Recorder’s Office on Friday. Representatives of San Francisco-based Stockbridge did not respond to a request for comment.