Graymark Capital partners with New York Life Investors in $52M office acquisition

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Graymark Capital partners with New York Life Investors in $52M office acquisition

San  Francisco,  CA,  December,  2015 – Graymark Capital, Inc., in partnership with New York Life Real  Estate Investors, has acquired the Ridder Park Technology Center, a 238,342 square foot creative office/R&D campus in North San Jose for $51.5 million.

The institutional-­‐quality property is 89% leased to two tenants on long-­‐term leases. A majority of the space  was  recently  renovated  to  creative  office  with  modern  lab  built  with  upwards  of  $100  psf  invested in the space. The property is located in the booming Silicon Valley market. Located in the North San Jose submarket off of Highway 880 at Brokaw, the property provides a convenient location to  both  South  Bay  and  East  Bay  employees  and  has  excellent  freeway  visibility.    The  campus  is  in  a  mature setting with the best walkability to retail amenities in the North San Jose submarket.

The 238,342 sf asset was constructed in 1992 and is improved with creative office interiors, outdoor amenities and modern lab space. The property was an appealing investment for Graymark due to the long-­‐term leases, strong cash yield, potential re-­‐tenanting opportunity, discount to replacement cost and  excellent  market  fundamentals.  CEO  Brian  Hecktman  stated,  “This  acquisition  continues  our  program of making smart investments in infill locations that exhibit strong employment and demographic  trends.    We  are  also  excited  to  enter  into  our  first  transaction  with  New  York  Life  Investors, a strong institutional equity partner for us as we continue to grow our platform.”

Managing  Director  and  CFO  Jeff  Hoppen  added.  “We  were  able  to  purchase  an  institutional  quality  asset at an attractive basis with long-­‐term leases and some tenant issues to work through in a market where  we  have  already  bought  seven  assets  in  the  past  few  years.    Silicon  Valley  is  one  of  the  strongest office and R&D markets in the country and the North San Jose submarket is in very active leasing mode with companies like Apple making major investments.”

Debt financing on the acquisition was provided by the San Francisco office of Wells Fargo Bank. The property was purchased through the Silicon Valley office of Eastdil Secured led by managing director Greg Cioth.

About Graymark Capital
Graymark Capital, Inc. is a real estate investment firm located in San Francisco, California that invests in  commercial  properties  throughout  the  West  Coast.  The  company  has  acquired  950,000  sf  of  institutional quality property valued at $215 million over the last 3 years. Founded by CEO Brian Hecktman,  with  Managing  Director/CFO  Jeff  Hoppen  and  VP  of  Acquisitions  Rick  Lafranchi,  the  company focuses on opportunities where it can create significant value by capitalizing on the team’s collective experience from over $5 billion of real estate investment and development over the past 20 years.

About New York Life Real Estate Investors
With over 100 years in business, New York Life Real Estate Investors is the real estate debt and equity investment arm of NYL Investors LLC, which is a wholly-­‐owned subsidiary of New York Life Insurance Company. NYL Investors has primary responsibility for managing the fixed income assets of its parent company New York Life Insurance Company as well as third party assets in select classes including real estate. NYL Investors, including certain affiliates, has over $210 billion in assets under management as of June 30, 2015 of which over $42 billion is managed by Real Estate Investors.

Our parent company, New York Life, was founded in 1845 and is a Fortune 100 company. It is one of the  largest  mutual  life  insurance  companies  in  the  United  States,  holding  the  highest  ratings  for  financial strength currently awarded to any U.S. life insurer funds, six of the largest insurance companies in the world and large family offices.