Kaiser Building

Kaiser Building
Milpitas, California

Property Address:
611 S. Milpitas Blvd.,
Milpitas, CA 95035

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