SAN JOSE -- In an $800 million deal, a group of American and Canadian investors have bought 73 Silicon Valley office and research buildings, which they plan to extensively renovate.
Together, the buildings represent space equal to six regional shopping malls. The buyers are Canada-based Ivanhoe Cambridge, San Francisco-based real estate company DivcoWest and Texas-based realty investment firm TPG Real Estate.
The three companies bought the 73 buildings at the end of 2012 from Mission West Properties, a firm headed by veteran developer Carl Berg.
DivcoWest, TPG, Ivanhoe and Berg wouldn't discuss the specifics of the deal Wednesday and didn't provide the locations of the buildings. However, people with direct knowledge of the deal say the buildings are in prime locations in North San Jose, Sunnyvale, Mountain View, Santa Clara and Fremont. Some buildings are in South San Jose.
TPG and DivcoWest, in addition to paying $400 million in cash for the buildings, assumed $400 million in debt, according to a person with knowledge of the deal.
"This investment enables us to acquire a critical mass of assets in a rental market that is seeing one of the best growth rates in the United States," Bill Tresham, president of global investments with Ivanhoe Cambridge, said in a prepared release.
Leasing activity has been brisk the past two years in Silicon Valley, with the charge led by major expansions of Cupertino-based ___