A joint venture comprising TMG Partners, Grove Real Estate Partners and an affiliate of Lone Star Real Estate Fund VII has acquired a 2.2 million-square-foot portfolio of research and development properties in Silicon Valley. According to the buyers, the portfolio consists of mission-critical, predominantly single-story Class A R&D assets spread across six campuses.
The seller, Washington Holdings, assembled and upgraded the portfolio over its hold period. During its ownership, Washington Holdings invested approximately $173 million in base-building work, exterior upgrades and interior renovations across the properties. The campuses are clustered within a five-mile radius in the Golden Triangle area, spanning Santa Clara, San Jose and Milpitas, Calif.
In total, the acquisition encompasses 50 buildings situated on about 140 acres. The new ownership group notes that the collection represents the largest institutionally owned portfolio of Class A, mostly single-story, mission-critical R&D properties in Silicon Valley. The assets are positioned as a sizable, contiguous-scale play in one of the region’s core innovation clusters.
The portfolio is currently 87 percent leased, with occupancy driven by a diversified roster of 63 tenants. This existing rent roll provides immediate cash flow across the six campuses while leaving some vacancy available for future leasing and potential repositioning by the new owners.
TMG Partners and Grove Real Estate Partners will operate the portfolio following the transaction. The parties did not disclose the sale price, and no details were provided on capitalization, financing structure or business plan beyond ongoing operation of the assets.
The properties included in the transaction are identified as Zanker Place, Mission Park R&D, Montague Square, North First @ Orchard Station and Montague Oaks. All are located within Silicon Valley’s Golden Triangle, reinforcing the portfolio’s concentration in established R&D and innovation corridors. The transaction underscores continued investor interest in large-scale, institutional-quality R&D campus assets in the region, even as detailed financial terms remain undisclosed.
