18 May Buyers scoop up choice Mountain View property Ace Hardware rents
MOUNTAIN VIEW — A group of savvy investors has bought a Mountain View site in a deal that is a reminder that Silicon Valley remains an attractive place for property purchases despite the economic uncertainties triggered by the coronavirus.
A real estate group headed by veteran Bay Area developers and property investors Jason Peery and Roger Fields has bought a property that is currently leased to a bustling Ace Hardware store, according to county documents and sources familiar with the transaction. Jason Peery is the son of Richard Peery, who decades ago teamed up with John Arrillaga to co-found Peery Arrillaga, a legendary Bay Area development company.
The quality of the tenant as well as the size of the parcel — and an adjacent site controlled by the same buyers — suggests that the property is an attractive long-term investment, as well as one that could eventually be redeveloped as a large new project, commercial real estate experts say.
The deal also bodes well for the property investment and development prospects for Silicon Valley, which prior to the time the coronavirus began to bludgeon the Bay Area economy was one of the nation’s hottest spots for economic growth and real estate.
“There is a lot of appetite for real estate in Mountain View and Palo Alto,” said Eric Fox, an executive managing director with Cushman & Wakefield, a commercial real estate firm. “These are always very strong office markets.”
Acting through an affiliate, Charleston Investment Group II, the buying group led by Peery and Fields paid $24 million for the 3.9-acre site, Santa Clara County property files show. Saab CA was the seller.
The buyers also obtained a $12 million loan from Illinois-based Northern Trust Co. at the time of the May 7 property purchase, county documents show.
“The idea here is that you buy a property with good upside potential and with good income that is already in place, and if you choose to, you can take it through the entitlement process,” said David Sandlin, an executive vice president with Colliers International, a commercial real estate firm. “When the leases expire, you can build a new project on the site.”
The recently purchased property is at 2555 through 2565 E. Charleston Road between San Antonio Road and Independence Way in Mountain View.
The buyers also own a 1.9-acre property at 2513 through 2525 E. Charleston that’s next to the Ace Hardware site. That gives the real estate group led by Fields and Peery control over 5.8 acres in a choice section of Mountain View.
“This deal shows there is continued optimism about the future of Silicon Valley on the part of investors,” Fox said.