Menlo Equities buys four South Bay data centers in $100M+ deal

Properties part of $500M deal that included 9 data centers across 3 regions

San Francisco /
Sep.September 22, 2021 01:30 PM
Rick Holmstrom, Founder & Managing Partner, Menlo Equities (iStock, Menlo Equities)

Menlo Equities bought four Silicon Valley data centers underlining the popularity of commercial properties as more people work from home, increasing the need for more data and centers to store it.

The Bay Area investor, working with a US pension fund, bought the properties for $108.8 million, the Mercury News reported. It’s part of a $500 million package that includes nine data centers across three different regions. The other five are in northern Virginia and the Dallas-Fort Worth area. Menlo first bought a data center in 2000 in Palo Alto.

“We like the portfolio because many of the assets are fully leased,” Menlo partner Christopher Chang told the newspaper. “But we also see the potential for upside opportunities because leases in some buildings are coming up for renewal.”

Wells Fargo Bank provided affiliates of Menlo Equities with a $210.3 million loan..

Menlo acquired the South Bay properties through separate transactions:

— The 124,400-square-foot 4650 Old Ironsides Drive in Santa Clara for $35,793,000.

— The 90,100-square-foot 4700 Old Ironsides Drive in Santa Clara for $28,001,500.

— The 42,100-square-foot 444 Toyama Drive in Sunnyvale for $25,610,000.

— The 69,700-square-foot 2950 Zanker Road in San Jose for $19,400,000.

[MercuryNews] — Victoria Pruitt





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