Barker Pacific Group

Kaiser Building - Milpitas, California

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Scope

59,262 square-foot medical office building

Challenge / Description

The Kaiser building was acquired by BPG with a soon to expire lease with Kaiser Foundation Health Plan. The existing lease rate was over market with major market uncertainty.

Solution

During the due-diligence period, BPG arranged for a new 12-year lease from Kaiser which would only become effective if BPG completed the acquisition. Based on the reduced risk, BPG was able to arrange attractive debt financing and close the acquisition. The project was sold one year later for an attractive gain.

Acquired

2002

Completed

Renovated in 2002. Sold in 2003.

Partners

Barker Pacific Group and The Baupost Group

Major tenants

Kaiser Foundation Health Plan