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Invesco picks up 410K sf industrial park in Morgan Hill

Five buildings valued at $119 million, $291 per square foot

Invesco's Marty Flanagan and Butterfield 5 Technology Park at 18115-18225 Sutter Blvd. (Trammell Crow, LinkedIn)
Invesco's Marty Flanagan and Butterfield 5 Technology Park at 18115-18225 Sutter Blvd. (Trammell Crow, LinkedIn)

Invesco has paid $119 million for five buildings in a newly built industrial campus in Morgan Hill.

The Atlanta-based real estate investor bought the Butterfield 5 Technology Park at 18115-18225 Sutter Blvd., the Silicon Valley Business Journal reported. The seller in five separate building transactions was Dallas-based Trammell Crow.

Invesco paid an average of $291 a square foot for the properties, which total 410,000 square feet.

The 24-acre Butterfield 5 tech park, completed last month, isn’t yet leased. CBRE, parent company of Trammel Crow, is marketing the properties for advanced manufacturing, life science, industrial or warehouse uses at $1.25 per square foot per month.

Its completion and sale comes amid high demand and low supply for industrial sites in Silicon Valley.

Butterfield 5 is one of just six industrial developments that are expected to be completed in the entire region this year, according to Colliers, a brokerage firm. The tight market for such space was apparent in Morgan Hill.

Of the 2.5 million square feet of industrial space in the city as of the end of the first quarter, 1.6 percent was available, according to Colliers.

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Trammell Crow has been watching demand for industrial sites in Silicon Valley and the potential for developing such projects just south of San Jose.

“We were an early mover on that trend,” Will Parker, a principal with Trammell’s Northern California office, said in an email to the Business Journal.

The campus purchase was only the latest local deal for Invesco. In January, a joint venture it was involved in sold an industrial building in Sunnyvale to Apple Inc. for $44 million.

In December, another joint venture involving the firm sold a pair of in-development research-and-development structures in Sunnyvale to LinkedIn Corp. for $123 million.

In November, Invesco and Lincoln Property paid $85 million for an Fremont office campus owned by an affiliate of Robert Flaxman, a developer jailed in the same college admissions scandal that netted Lori Loughlin and Felicity Huffman.

In October, a third joint venture involving Invesco sold an office campus in North San Jose to Exeter Property Group for $192 million.

[Silicon Valley Business Journal] – Dana Bartholomew

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Advanced ManufacturingCommercial Real EstateIndustrialInvescoSilicon ValleyTrammell CrowWarehouse