Campbell, CA – Ellis Partners announced today that it completed a transaction for funds managed by Oaktree Capital Management, L.P. (“Oaktree”) to purchase a majority stake in the three-building, 365,000-s.f. Class A office component of the iconic mixed-use Pruneyard complex. Ellis Partners, which purchased the property in 2014 will retain an ownership stake and continue to manage the project.
The Pruneyard Office Towers are centrally located in the heart of Silicon Valley’s West Valley submarket with prominent visibility and ease-of-access along Highway 17 and less than a 10-minute walk from downtown Campbell (via a newly improved walkway) as well as the Hamilton VTA light rail station. As part of this West Valley landmark property, the towers are directly adjacent to the recently transformed the 260,000-s.f. Pruneyard Shopping Center and a 169-room Doubletree by Hilton hotels. The Oaktree transaction provides the new ownership group with fresh capital to embark on significant additional amenity and common area upgrades to the office buildings. Ellis Partners will continue to own the retail component with its existing financial partner.
“This is a one-of-a-kind, amenity-laden property in Silicon Valley’s West Valley. These office towers offer the exact type of amenity and entertainment options that today’s office tenants are increasingly demanding. Our tenants have the best of all worlds,” said Jim Ellis, Managing Principal of Ellis Partners. “We are thrilled to have Oaktree as our new partner which allows us to invest even more deeply into these towers in keeping with all of the major changes we have implemented on the attractive retail, food and entertainment offerings right outside the front door.”
“We are excited to be partnering with the Ellis team on our first transaction together and are looking forward to implementing our capital plan to further improve the asset,” said Taejo Kim, Managing Director of Oaktree.
The three towers on the properties are:
- Tower 1: 1901 S. Bascom, 119,310 s.f. and 18 stories tall
- Tower 2: 1999 S. Bascom, 119,002 s.f. and 10 stories tall
- Pruneyard Place: 1919 S. Bascom, 126,736 s.f. and 6 stories tall
- The site for 777 Campbell Avenue, a fully-entitled 100,000 s.f., 5-story building within the Pruneyard, is also included in the transaction.
The towers’ multi-tenant and varied floorplans allow Fortune 100 companies as well as professional service and younger technology companies to benefit from their tenancy at the amenity-rich West Valley development.
The Pruneyard Office Towers sit adjacent to the Pruneyard retail center, which features 17 restaurants and 23 retailers. A few of the offerings include Trader Joe’s, Rock Bottom Restaurant & Brewery, Mendocino Farms, Orchard City Kitchen, and The Pruneyard Cinemas, a luxury format cinema. Even more high caliber food and retail options are set to debut soon.
Melinda Ellis Evers, Managing Principal at Ellis Partners added, “We are thankful for our nearly five-year collaboration with the community and our prior investors. Each contributed greatly to what makes this property so special. We have looked for opportunities to partner with Oaktree for many years and are pleased that our first venture together will be at the iconic Pruneyard Office Towers.”
The South Bay Eastdil Secured Investment team, with support from the on-site Cushman and Wakefield listing team of Todd Beatty, Bob Simpson and Rob Souza assisted with the transaction.
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Oaktree is a leader among global investment managers specializing in alternative investments, with $120 billion in assets under management as of December 31, 2018. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 950 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com.