News Release
AMSTAR GROUP FINALIZES SALE OF REPOSITIONED SAN JOSE PROPERTY TO NEWLY FORMED JOINT VENTURE
Four Corners Properties and Westbrook Partners Close on Sale of Montague Park, 417,532-Square Foot Campus on 23.6-Acre Site for $94-million
SAN JOSE , CA (October 9, 2006) – Amstar Group LLC, a real estate private equity firm based in Denver, Colorado, completed an office campus disposition of Montague Park in San Jose, announced Gabe L. Finke, CEO of Amstar Group. A newly formed joint venture between Four Corners Properties and Westbrook Partners acquired the five-building property encompassing 417,532 square feet of Class A office and R&D space for $94-million.
Montague Park was originally developed in two phases by a joint venture of Sutter Hill and The Equitable. The first three buildings were completed in 1986 and the last two in 1989 and 1990. Amstar Group acquired the property in August 2005 for $75.1-million. The company enhanced the property through $1 million in improvements to the campus. Montague Park is currently 62% leased.
“Amstar was able to recognize an investment opportunity by entering the San Jose investment market early and purchasing quality office product in a fundamentally improving leasing market and capital market interest,” said D. Scott Gibler, executive director of Amstar Group.
Founded in 1987, Amstar Group invests nationally in value-add acquisition and development opportunities, often with local partners. Amstar has realized significant investment returns for itself and joint venture partners through a disciplined disposition program. Amstar evaluates their portfolio on a property-by-property basis and are focused on maximizing the value and total return of every asset. In its history Amstar has acquired, developed and sold more than $2.2 billion of real estate. The firm has so far committed $500 million during 2006, including acquisitions and new developments in hospitality properties, office properties, apartment communities, mixed-use projects, master planned retail centers and distribution facilities.
“From the day we acquired Montague Park, we received calls from interested buyers,” said Gibler. “We took advantage of the flood of investor interest and were able to make a sizable profit for a one-year hold. The price offered allowed us to realize the profit we underwrote into the acquisition but in a much shorter time period. Our local team at Menlo Equities as the property managers and CPS Corfac International as the leasing and sales brokers greatly assisted us in this successful investment.”
According to Gibler, Amstar is actively pursuing other investments in the Silicon Valley and greater Bay area markets.
CPS Corfac International represented both Amstar and the Four Corners Properties/Westbrook Partners joint venture in the transaction.