Asilomar Buys 195,000-SF Britannia for $38 PSF

FREMONT, CA-Britannia Research Park, a vacant 195,000-square-foot R&D campus here has traded hands for approximately $7.3 million, or $0.38 per square foot. The three-building multitenant development sits on three parcels totaling approximately 14 acres at 4900 Milmont Dr. and is approximately 20 years old.

The heavily powered property has been on and off the market for the past four years at much higher prices. The seller was Hartford, CT-based UBS Realty Investors. The new owner is Menlo Park-based Asilomar Partners, a partnership of Ben Crockett, Roger Fields and Jason Peery that has already begun filling the empty space.

Crockett says the property changed hands for $25 million in 1989 and was under contract to be sold in 2006 for $29 million. The asking price reportedly declined to $25 million in 2008 and then $13.4 million earlier this year as prospective buyers came and went, unable to gain financing. Asilomar paid all cash. UBS Realty ws not immediately available for comment.

In an effort to stabilize the property as quickly as possible Asilomar is passing along its savings. Fields tells GlobeSt.com the asking rate is a awell-below-market $0.39 per square foot per month, triple net, for the majority of the space, and says that the triple net charges also will be well below market at $0.11 per square foot because the low sales price translates to lower taxes. One space, a 14,000-square foot area built out as 100% office, is being offered at $0.50 per square foot per month.

The property already has landed its first tenant, having inked a 25,000-square-foot deal with contract electronic manufacturer Morgan Royce while the property was in escrow, Crockett says. Many tours have taken place, he adds, and more deals are reportedly in the works. Availabilities range from 10,000 square feet to 60,000 square feet.

“The units are generally ready for occupancy now,” he says. “Morgan Royce was a South Bay tenant that we attracted because of our pricing. We feel really confident this will lease very quickly.”

Asilomar has renamed the property Dixon Landing Research Park. It is the company’s only asset in Fremont. Mike Webber of GVA Kidder Mathews represented Asilomar in the transaction. Tom Taylor of CB Richard Ellis represented UBS Realty.