Blackstone Real Estate Advisors Sells the San Tomas Technology Park in Santa Clara, California

New York – An affiliate of Blackstone Real Estate Advisors sold seven buildings consisting of 625,000 square feet known as San Tomas Technology Park, located in Santa Clara, California, to Mission West Properties, L.P. Blackstone sold the project for $110 million. Larry Blickman of BT Commercial was the sole advisor on the transaction.

The project is located at the intersection of Central Expressway and San Tomas Expressway. The Project is currently 90% leased and two tenants, NEC Electronics America, Inc. and JDS Uniphase Corporation, lease in excess of 64% of the project. In conjunction with the transaction, Blackstone also received $14.2 million as prepaid rent from Turnstone Systems, Inc., another tenant at the project, in exchange for reducing the remaining term of the tenant’s lease.

“We are pleased with this sale to Mission West Properties. Despite the deterioration in market conditions, we were able to recoup virtually all of our invested capital in the project through the combination of cash flow, the prepaid rent and the disposition proceeds,” said Gary M. Sumers, Senior Managing Director at Blackstone.

About The Blackstone Group

The Blackstone Group, a private investment bank with offices in New York and London, was founded in 1985. Blackstone’s Real Estate Group has raised four funds representing approximately $4 billion in total equity. The group has made over 100 separate investments in hotels, offices and other commercial properties with a total transaction value of about $13 billion. In addition to real estate, The Blackstone Group’s core businesses include Private Equity Investing, Corporate Debt Investing, Marketable Alternative Asset Management, Mergers and Acquisitions Advisory, and Restructuring and Reorganization Advisory.