A local real estate investor who also runs a tech company is assembling a tidy little portfolio in the South Bay.
Rani Properties LLC paid $3.51 million, or $195 per square foot, in recent weeks for an 18,000-square-foot industrial building at 1276 Hammerwood Ave. in Sunnyvale. The new owner plans to occupy about half the building with its business, Paciwave, which makes microwave components for military applications, the medical industry and telecommunications fields.
What makes this admittedly small deal interesting is that it marks the second time Paciwave has moved, each time allowing smaller companies in its former buildings to expand. Rani also owns 1286 Hammerwood, which weighs in at 15,000 square feet, and 743 N. Pastoria, which is about 12,000 square feet.
Parimal Kadakia, owner of both Rani Properties and Paciwave, said it's all part of recognizing the need for preserving the type of buildings suitable for companies such as his.
"While the trend has been for many similar properties to be converted to office or residential complexes, we seek to preserve small size R&D and industrial building properties to cater to small businesses or new ventures," Kadakia said. " We will continue to acquire suitable properties in Silicon Valley in this effort."
Indeed, one reason for the Valley's shrinking industrial vacancy rate is not just strong demand (though that's a factor too). It's conversions of such properties into uses that can command higher rental rates, such as high-end office or apartments.
Cassidy Turley statistics show that vacancy for industrial space stood at 5.6 percent in the third quarter of 2014, down from 8 percent in the first quarter of 2012.
In the latest deal, Kalil Jenab and Dave Geissberger with Cassidy Turley represented the buyer. The seller, Peng Capital LLC, was represented by Rico Cheung and Jennifer Berrueta of Kidder Mathews.
For the full story, go to Silicon Valley Business Journal.
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