Rio Robles was acquired by Ridge in partnership with its institutional capital partners in 2012. The property is a three-building, Class A Office/R&D corporate campus situated within the Golden Triangle of Silicon Valley. Located in the North San Jose submarket, the asset was fully repositioned with best-in-class finishes and fully leased to two technology tenants.
In comparison to the replacement cost of $275/sf at the time, the overall basis of $200/sf was compelling. Given the favorable basis, rapidly improving office/R&D market, and the opportunity to add meaningfully to the performance of the property with new leasing, the investment achieved very attractive risk-adjusted returns through the 16-month ownership period. The property was sold to an institutional investor in 4Q2013, generating deal-level returns (IRR) in excess of 50%.