Diablo Technology Center
The three-building, 191,009 SF, Class A office/R&D portfolio was acquired for $35.1 million in May 2015. The properties are considered to be in the top tier of the Tri-Valley R&D market, with high-quality recent construction, functional space, abundant parking and access to nearby amenities and transportation. The portfolio was acquired as REO from a CMBS trust. Ridge rebranded the portfolio as Diablo Technology Center and executed a repositioning program that included major interior upgrades, new signage, landscaping, painting and parking lot upgrades. The new branding, along with market-ready renovation of the vacant space, allowed for leasing of all of the vacant space in the first year of ownership at market-leading rents.
In 4Q-2016, the property was sold in two separate transactions to two trade buyers for prices that represent peak pricing for the cycle. The overall investment return for the 18-month hold was a deal level 33% IRR and a 1.7x equity multiple.