Northwestern Mutual Life and McCarthy Cook JV Spends $179.7MM for Castro Station in Mountain View

August 17, 2018

(EDITOR’S NOTE: According to public documents cited in a San Jose Mercury News report, the sale closed at $179.7 million, or $1,565 per square foot. TH Real Estate had acquired the property in November of 2015 for $148.5 million, or $1,293 per square foot.)

San Francisco, CA (August 17, 2018) — NKF Capital Markets has announced the sale of Castro Station, a three-building Class A office campus totaling 114,809 square feet in downtown Mountain View, CA.

NKF Capital Markets Vice Chairman Steven Golubchik, Executive Managing Director Edmund Najera, Senior Managing Director Tyler Meyerdirk and Senior Analyst Darren Hollak represented the seller, TH Real Estate, in the transaction to the buyer, Northwestern Mutual Life Insurance and McCarthy Cook.

Castro Station is prominently located with frontage on West Evelyn Avenue, adjacent to Caltrain and within walking distance to the abundance of Castro Street amenities. Built in phases between 2000 and 2014, the three buildings; 100, 150 and 200 West Evelyn Avenue are situated on approximately 4 acres of land. It is 94 percent leased to seven tenants – anchored by Dropbox which recently occupied the entire 200 West Evelyn building after a state-of-the-art creative office build-out.

“Castro Station is a generational Mountain View asset, providing scale and direct access to both Caltrain and a diverse amenity base. Castro will continue to be the top performing Mountain View asset as tenants’ demand for Caltrain proximity continues to increase,” said Golubchik.

The well-located office campus features ample parking with a three-story below-grade parking garage with 244 stalls and 102 surface-level stalls.

About NKF Capital Markets
NKF Capital Markets, operated by Newmark Group, Inc., is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 16,000 professionals operate from approximately 430 offices on six continents.

We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit

Newmark Group, Inc., which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.


June 30, 2017
Published in: Business Real Estate Weekly of Arizona
Volume: XXIII
Number: 25

Phoenix – After a brief respite from buying commercial properties in the Valley, Regent Properties LLC of Los Angeles, Calif. (Jerey Dinkin, Douglas Brown, Eric Fleiss, partners) has jumped back on the horse with the $66.4 million ($205.95 per foot) purchase of a 322,406-square-foot oce project located at the northwest corner of 24th Street and Highland Avenue in Phoenix. The two-building complex, called Camelback Commons, is comprised of a 161,845- square-foot structure at 4722 N. 24th Street and a 160,561-square-foot oce at 4742 N. 24th Street. The seller was MS MCC Highland LLC, which was formed by Morgan Stanley in New York City, N.Y. (NYSE:MS) and McCarthy Cook & Co. in Costa Mesa, Calif. (Thomas McCarthy, Edward Cook, III, co-presidents). The deal was brokered by Barry Gabel and Chris Marchildon of CBRE in Phoenix, along with Kevin Shannon, Ken White, Paul Jones and Rick Stumm, all formerly of CBRE and now with Newmark Grubb Knight Frank in So. Calif. The oce space is 82 percent occupied. The leasing is being handled through Phoenix-based Lee & Associates agents Andrew Cheney, Craig Coppola and Gregg Kafka, who also assisted with the sale. Fleiss says Regent Properties plans to complete a multi-million dollar upgrade to the 4.91-acre property, which was developed in 1985 and 1986. Regent Properties made the investment through a fund called AR Pool III LLC (sole member is Atlantic Regent REIT Inc.). Maricopa County records show AR Camelback LLC (Regent Properties entity) acquired the asset with a $25 million down payment and a $52.8 million loan from Compass Bank, which presumably leaves $11.4 million for improvements, brokerage fees and other costs associated with attracting tenants to lease the 65,000 + sq. ft. of vacant space in the two, four-story buildings. The Lee & Associates agents are looking for tenants needing from 750 sq. ft. in a single suite to 42,258 sq. ft. of contiguous space comprised of the entire third oor of the 4722 N. 24th Street oce. In October 2010, the Morgan Stanley/McCarthy Cook venture paid $27.25 million ($84.52 per foot) to acquire the oce buildings at 24th Street and Highland Avenue. With the purchase of Camelback Commons, the Regent Properties portfolio in the Phoenix area now includes just under 1.673 million sq. ft. of oce space in eight developments and 169,497 sq. ft. of R&D space in one project. Regent Properties invested $290.675 million ($157.76 per foot blended average) to buy those properties over the past seven years. Excluding the newly-acquired oces and 227,381 sq. ft. of oce space Regent Properties purchased in two deals in 2010, almost 1.293 million sq. ft. of the oce and R&D space was added in 2014 and 2015. Camelback Commons is the rst investment in the Valley for Regent Properties in nearly two years. “We think this is a great time to invest in Phoenix,” says Fleiss, who adds that Regent Properties is “always looking for more properties” in the Valley. According to the company website, Regent Properties has $1 + billion in real estate assets under its management across the U.S. Sam Kraus, head of acquisitions at Regent Properties, is at (310) 806-9800. Talk to Cook at (714) 913-6900. Reach Gabel and Marchildon at (602) 735-5555. Call the Lee & Associates agents at (602) 956-7777.


2016 – OCBJ

Jan. 4, 2016
Published in: Orange County Business Journal
Author: Mark Mueller

REAL ESTATE: Sale likely biggest office deal of 2015

The new owners of MetroCenter at South Coast are planning a major renovation project of the office complex, with an expectation of turning the Costa Mesa site into one of Orange County’s most unique office campuses. A venture between Madison, N.J.-based Prudential Real Estate Investors and McCarthy Cook & Co. in Costa Mesa closed on the purchase of MetroCenter late last month.

The 17-acre campus, which is just off the San Diego (I-405) Freeway, holds a trio of 12-story offices totaling about 800,000 square feet, as well as a 51,000-square-foot 24 Hour Fitness health club.

The property was acquired from an affiliate of San Francisco-based RREEF Funds LLC, which had owned the campus for about a decade.

Financial terms of the sale were not immediately disclosed.

RREEF paid a reported $261 million for the campus in 2005.

It looks as though the latest sale came just in time to be Orange County’s priciest office sale of 2015.

A deal approaching the property’s 2005 price would make MetroCenter Orange County’s largest reported office sale of the past year by more than $100 million.

The new owners are planning to put substantially more money into the Costa Mesa property over the next year and a half, adding a bevy of creative-office flourishes, extensive outdoor amenities, and other property upgrades on par with those seen at cutting-edge office properties in Silicon Valley, according to Edward Cook, co-president of McCarthy Cook.

The redevelopment project is also designed to tie the property into other cutting-edge Costa Mesa properties such as the Lab, the Camp and South Coast Collection retail centers, Cook said.

“If we’re on our game, we’ll create a truly unique workplace,” said Cook, who founded the privately held real estate company in 1995 with Tom McCarthy.

In addition to its location, MetroCenter— which is on Anton Boulevard and a few blocks from the South Coast Plaza shopping center—has one big thing going for it: size.

It is the largest office campus in Orange County that’s not owned by Newport Beachbased developer Irvine Company, according to McCarthy Cook officials.

The three offices, which were built in phases between 1984 and 1991, didn’t see too much in the way of upgrades under their prior ownership, and the property has struggled of late in attracting tenants. Its buildings are currently about two-thirds occupied, according to the new owners.

Larger tenants at the property include Experian Inc., which has its own headquarters campus next door to MetroCenter, as well as Santa Ana-based Stearns Lending.

Monthly rents at the buildings average about $2.60 per square foot, according to McCarthy Cook officials.

That’s roughly 25% below what’s charged at other high-end properties in the vicinity, including Irvine Co.’s Pacific Arts Plaza and the Offices at South Coast Plaza, which is run by C.J. Segerstrom & Sons.

“Our goal is to narrow that gap” in rents following the redevelopment project, said Brian Harnetiaux, vice president of asset management for McCarthy Cook.

The property could be configured to hold a single tenant needing upward of 100,000 square feet of contiguous space, Harnetiaux said.

The new ownership group said it has brought on Cushman & Wakefield vice president Mike Coppin to head up leasing for the property, and Megan Allen from the Irvine Co. to manage the property.

The new owners also are currently working with architects at the San Diego and Newport Beach offices of Gensler on the new designs for the upgraded property, a renovation project expected to cost well in excess of $10 million, officials said.

See-through windows and sliding doors will be added to the first floors of each of the three offices at the property to make those spaces more appealing and promote indoor-outdoor workspaces.

It will be the first indoor-outdoor workplace in a high-rise campus setting in Orange County, according to Cook.

Underused outdoor patio areas on some of the buildings’ upper floors also will be getting a similar facelift, along with renovations to the buildings’ lobbies, restrooms and elevators.

Food Trucks
MetroCenter’s outdoor areas will also get a major overhaul, with a dedicated “food truck runway” planned with dedicated power and water stations for the vehicles in order to bring in a revolving cast of food vendors, as well as extensive seating areas for tenants to eat.

Also on tap: a 1-mile fitness path that will circle the property and likely be operated in conjunction with the on-site gym, a bikeshare program for tenants, as well as an executive lounge, and shower area in one of the offices.

The goal is to get the renovations done by mid-2017.

“We think this will be a special place,” Harnetiaux said. “We want to feed into the hip part of Costa Mesa.”

“This is the first time you’ll see a high-rise office (in Orange County) take on a look of a Silicon Valley campus,” Cook said.

The purchase marks the second notable OC office purchase for Prudential Real Estate Investors in 2015. In August it bought 1301 Dove St., a 202,000-square-foot office in Newport Beach about a mile from John Wayne Airport. McCarthy Cook is acting as that building’s asset manager.

The investment division of Newark, N.J.- based Prudential Financial paid nearly $73 million for the Dove Street building, one of several big local office properties bought by insurance companies in 2015.

“With projections for outsized employment growth relative to the nation and limited new office construction, we believe Orange County’s office market has considerable room to grow before approaching pre-recession peaks,” said Kevin Smith, head of the Americas at Prudential Real Estate Investors.

For McCarthy Cook, the MetroCenter purchase marks a return home of sorts for the real estate owner and developer, which played a large part in the campus’ prior development and entitlement work more than 15 years ago.

Among other things, it helped entitle the land next to MetroCenter that was used to build Experian’s 450,000-square-foot campus, as well as a 4.8-acre site on Anton Boulevard next to the office complex that now holds a pair of unused restaurant sites. That land is slated for an upscale rental project called Symphony Apartments.

McCarthy Cook was part of the ownership group that sold the MetroCenter offices to RREEF in 2005, but it kept a stake in the 4.8- acre site, whose ownership group also includes Stockbridge Capital Partners in San Francisco and Santa Ana-based Sakioka Co., a longtime area landowner.

The 393-unit apartment site—once considered for a high-rise condo tower but now envisioned as a midrise rental project—could begin to see work move ahead next year.

The addition of the rental units, combined with the upgrades to the office property, will make MetroCenter a mixed-use campus not too different from Irvine’s Park Place in terms of amenities, Cook said.

“It’s how people want to work today.” ■


2016 – BOMA

July 2017
Published in: BOMA International Magazine

When I was still in college, I had plans to put my degree in economics to good use by starting a career in financial advising. However, a wise older friend who worked in the commercial real estate industry told me something that really struck a chord: “When you’re young, not many people will trust you with their personal finances, but they will trust you with their real estate needs.” This friend became the first in a long line of people who would help me navigate the career I ultimately chose post-graduation: commercial real estate.

There is a popular adage in our industry: Commercial real estate is all about relationships. Relationships between owners and property managers. Relationships between property managers and tenants. Relationships between service providers and building teams. But what I consider the most significant relationship in our industry is the one between a mentor and a mentee.

Those of you who know me know that I am exceptionally passionate about mentorship. I believe it is the single most important way for commercial real estate to attract, retain and nurture the best and the brightest young talent.

When I was in college, I incorrectly assumed a job in commercial real estate consisted of little more than adjusting thermostats and dealing with angry tenants. Of course, I now know that job descriptions in our industry are much more complex, and no two days are exactly the same for a property professional. So, our first task as an industry is increasing awareness. College outreach is important, especially to those students in commercial real estate programs. Offering internships with your company can be a great way to help students discover what makes a job like property management exciting.

And the learning shouldn’t stop after an internship ends. Many commercial real estate companies have formal mentorship programs, but some of the best mentorship relationships often spring up organically within a building or through interactions at BOMA events. Companies without formal training or mentorship programs also can rely on outside help from BOMA International, which offers unparalleled industry education, and their BOMA local associations, many of which have Emerging Professionals Committees. My BOMA local association, BOMA/ Orange County, hosts “speed networking” events that pair industry veterans with young professionals for short conversations about how to grow in a commercial real estate career. As a mentor myself, I often find that I learn as much from the young professionals I advise as they (hopefully!) learn from me!

My career has benefitted so much from the guidance of so many supervisors, peers and colleagues I met through BOMA, and I’m sure yours have, too. Commercial real estate truly is the relationships business—and our people are our best assets!


2016 – BOMA

July 2017
Published in: BOMA International Magazine

First and foremost, I want to share how honored and thrilled I am to serve as the chair of BOMA International for the coming year—one of the youngest, in fact, of BOMA’s long and storied history.  Let me tell you a little bit about myself: I’m senior vice president of Asset Management at McCarthy Cook, where I oversee leasing, property management and asset management activities for a portfolio of office buildings across the state of California. (To learn more about Brian Harnetiaux’s background, check out his profile on page 16.)

As a forward-thinker, I am fascinated by how our industry is changing and growing thanks to factors that include everything from new technologies to tenant demand for more flexible and creative workspaces. Right now, my company is in the midst of an exciting redevelopment project that reflects one of the hottest trends in commercial real estate: the concept of a “live-work-play” space.


2016 – BOMA

June 27, 2016
Published in: Bisnow
Author: Amanda Marsh, Bisnow NJ

Like many executives in property management, McCarthy Cook & Co SVP of asset management Brian Harnetiaux fell into the industry’s lap by happenstance. McCarthy Cook Upon graduating from UC Davis in 1998, he considered going into financial advising and interviewed with a few groups. A friend then asked him, “Have you considered going into real estate?” pointing out that at age 23, not many people would trust him with their money, but would do so with their properties if he worked hard enough. So Brian took that advice, and his first job was as a leasing broker with Lee & Associates. Two years later, he was hired by McCarthy Cook as an associate leasing director. A few years after that, McCarthy Cook inked a sale and recapitalization deal with RREEF for its California office portfolio, and Brian headed over to the real estate investment management company. Life at RREEF was much different from what he was used to—unlike most companies, it had a hybrid approach when it came to leasing and managing. So all leasing brokers had to know property management, while all management pros had to know leasing. Since he only knew one side of the business, his boss sent him to BOMA/Orange County for resources and education. “That’s when I started going to events, networking and meeting service providers,” he says. “I was a member for about a year when BOMA asked me if I’d like to take on a leadership role.” Brian Harnetiaux For Brian (above with his 3-year-old son), it was a baptism by fire. But he liked his BOMA/Orange County position so much that he continued on as association president for two years, then became president of BOMA California, the federation for the Golden State’s eight local associations. But that wasn’t enough—Brian aimed higher and went national, serving on the executive committee and as chair of BOMA’s industry defense fund oversight committee. This past year, he served as chair-elect and will take the helm as chair as he’s sworn in at tomorrow night’s TOBY Awards. He already has some initiatives in his pocket for the upcoming year, including attracting more talent into the property management industry and getting more young people involved. “Most people get into property management by accident,” he says. “But it’s a great career and you can be successful at a young age.” He’d also like to see BOMA add even more educational and research offerings to be the go-to for everyone in the industry—and make both education and research real life and accessible. Lastly, he wants to show the industry how property management not only protects the value of properties, but can create additional value. Brian Harnetiaux The San Clemente, CA, resident is husband to Erin, whom he calls the rock of their family who has allowed him to grow in his career. They have three children—in addition to his son, they have two girls, ages 11 and 8. He’s quite family-oriented, from coaching their softball and soccer teams to even being chief of his daughters’ Indian Princess organization. The family also owns an RV and loves to travel around together. Brian is also big into baseball, both as a collegiate player and a die-hard LA Dodgers fan. He even played on the Team USA baseball team when he was 12, traveling to Taiwan, China and Hong Kong to play ball. But those weren’t the most unique places he has visited: Before his senior year in college, he and his roommate drove to North Pole, AK, on a 48-day road trip—and they didn’t even have cellphones!

McCarthy Cook SVP Brian Harnetiaux to Become BOMA Chair for 2016-17

June 7, 2016
Published in: California Buildings News

Q Congratulations on being the next chairman of the Building Owners and Managers Association (BOMA) International. It’s good to have a Californian at the helm. As many of our readers are BOMA members or member prospects, can you give us an idea of your agenda?

A BOMA International takes a holistic approach to supporting the industry, which means we work in many different areas. Whether it’s advocating commercial real estate’s interests before Congress or creating critical educational resources on cutting-edge topics, we’re constantly innovating to best support a strong industry. There may be those in the industry who aren’t aware of the full breadth of the work we do, and I want to showcase everything BOMA has to offer. During my tenure, I especially want to highlight BOMA’s education and research. People frequently ask me what BOMA’s “take” is on a specific topic or issue. Our advocacy team is always ahead of the curve on legislative issues from drones to e-cigarettes, and we have great thought leadership in a wide variety of other areas. For example, we recently released a white paper on workplace transformation and tenant occupancy density. Densification is an important concern in our industry right now as tenants lease less space per employee, and we want to support our members as they navigate this new reality. The white paper was released alongside a resource for property professionals called the “Tenant Leasing Checklist: A Guide for Assessing Tenant Occupancy Density,” which helps building owners and managers address the effects of this trend on the built environment. Property managers are seeing their roles become increasingly diversified—they now have to be experts on everything from accounting to information technology to customer relations. That means BOMA has to work hard to provide our members with all the information and training they need to do their jobs well. Luckily, you see that reflected in our educational and research offerings. We also have a number of excellent tools for those working within the fast-growing industrial sector, such as the Industrial Experience Exchange Report, a one-of-a-kind resource that provides benchmarking data for industrial properties. This is a very exciting time to be in commercial real estate, and BOMA International is going to continue to be fundamental to our success as an industry.

Q How can the commercial real estate management industry become more effective at recruiting and training managerial talent?

A I am very passionate about this topic. Commercial property management is a wonderful career field: It’s rewarding, it’s interesting and it offers competitive salaries. The only problem is, not enough people know about it! When I was in college, I thought a property manager was just the person who stopped by to change the light bulbs, and most people in this job will tell you they found it by chance. However, our field is perfect for young professionals, many of whom can be very successful at an early age in this industry. Someone can start out as a receptionist and work their way up to asset manager or even real estate owner. Commercial real estate offers endless opportunities for advancement. Our industry places enormous importance on on-the-job training. We tend to promote from within, and that’s a great way to build up future leadership. Where that falls short, BOMA fills in the gaps with education, training, mentorship opportunities and networking. At our annual conference, we host Career Day, which is an opportunity for college students and veterans transitioning out of military service to experience first-hand how rewarding commercial real estate can be. We also have an Emerging Professionals in CRE Program for those new to the industry. If we can make more people aware of the opportunities our industry offers, I think there will be no end to the amazing talent entering commercial real estate.

Q What are the biggest legislative challenges ahead for the commercial real estate industry nationally? In California? And are there ways BOMA can better meet these challenges?

A We saw some huge legislative victories this past winter, including the permanent extension of the 15-year depreciation on qualified leasehold improvements and a two-year extension of the energy efficiency tax deduction for commercial buildings. We’re focusing on a number of other issues, including supporting the continuation of carried interest and “like-kind” exchanges, which are vital to the health of our industry. In California, the biggest issue we’re facing is “split roll” property tax. In California, Proposition 13 limits the increase in property taxes annually, but certain legislators have been trying to rescind that and apply to residential only. This would mean commercial properties would be assessed either annually or every couple of years, which would have a very negative effect on our industry. BOMA California and BOMA local associations across the state have been working hard to educate our legislators about what this would mean for our industry. I truly believe our lawmakers want to do what’s best for the state economy, and they simply don’t know what the real-world effects of this would be. Our job is to give them the information they need to make an informed decision. BOMA can best meet these challenges the way it has always—by educating our legislators about the needs of our industry. That strategy has been working very well for us, as evidenced by our recent legislative victories and our strong advocacy presence both on Capitol Hill and in the states.

Q Many BOMA members serve the industry as product and service vendors. How can BOMA be more meaningful to them? Attract more of them to BOMA?

A BOMA has a very robust product and service membership. Commercial real estate is built on trust and relationships, and having trusted, reliable product or service vendor partners makes a property manager’s job much easier. When vendors get involved in BOMA, they are showing building owners and property managers that they are invested in the industry and in their local communities. Seeing someone regularly at BOMA local association events helps build relationships that make the industry stronger.

Q Are there trends you see in California’s CRE management that you plan to highlight on the national stage?

A Because we have so much usable outdoor space, California is on the forefront of the new “live-work-play” trend. We’re seeing this significantly change the way office buildings are designed and managed, and property managers have to diversify their skill set to learn more about retail, for example. There are many small changes that take place when you manage a multiuse space—everything from how common area maintenance charges are allocated to what your daily schedule looks like. I think this trend is going to spread across the country, even to places with much more variable weather. What this will look like in different cities is still being determined, but BOMA is already offering resources to help property professionals excel with these new spaces.

Q What new or notable BOMA programs would you like the industry to be more aware of?

A We’ve seen tremendous growth with our BOMA 360 Performance Program, which recognizes excellence in building operations and management. Unlike other certification programs, BOMA 360 looks at every aspect of the building—from security and sustainability to tenant relations and training. BOMA 360 designees reap a tangible return on investment through operational efficiencies, as well as higher rental rates and higher levels of tenant satisfaction and retention than similar buildings without the designation. The program also has a significant international presence— there are BOMA 360 buildings in Canada, China, Colombia and Japan—with more countries starting to promote this designation. This is an exciting program that offers a great return on investment, and I encourage everyone to consider participating.



Jan. 26, 2014
Published in: San Diego Business Journal
Author: Lou Hirsh

New York- based AllianceBernstein Holding LP and McCarthy Cook & Co. of Costa Mesa have acquired Canyon Plaza, a two-building office campus in Sorrento Mesa, for $33.5 million, according to CoStar Group and public data.

The seller of the campus, located at 9808 and 9868 Scranton Road, was Chicago-based Jones Lang LaSalle Income Property Trust Inc. The 213,000-square-foot campus was built in 1986 and expanded in 1993.

In its own statement, McCarthy Cook & Co. said the campus was 49 percent leased to CareFusion Corp. at the time of the sale. It was previously master-leased to Conexant Systems Inc.

Officials said plans are in the works for a redevelopment of common areas and lobbies, with the addition of amenities including a tenant lounge, café and fitness center. The San Diego brokerage office of Jones Lang LaSalle Inc., which represented the buyer and seller in the transaction, has been retained to handle leasing.


Oct. 17, 2014
Press Release: RENTV – A Commercial Real Estate News and Media Company

McCarthy Cook & Co recently acquired a 120k sf office building in Santa Clara, in a partnership with Rialto Capital Management LLC. The price was not disclosed.

Built in 1984, the two-story building in situated on 5.7 acres at 3535 Garrett Dr, west of Bowers Ave on the south side of the 101 Fwy. The building also includes a recently-constructed fitness center as well as a 3.7 per 1,000 rentable square feet parking ratio.

Steve Prehm of Colliers International represented the seller, Applied Materials, a global leader in providing innovative equipment, services and software to enable the manufacture of advanced semiconductor, flat panel display and solar photovoltaic products. McCarthy Cook and Rialto Capital represented themselves in the deal.

At close, Applied Materials will commence a short-term leaseback of approximately 11% of the building, providing the new owners with the opportunity to reposition 3535 Garrett into a premier, amenity-rich office project. The buyer’s plans include: the redevelopment of all common areas and lobbies; a substantial enhancement of the building’s exterior and window line; the creation of new project amenities such as a tenant lounge, indoor and outdoor collaboration spaces and a branded bicycle program. In addition interior tenant space will be converted to a Class A, market ready standard.

Commenting on the acquisition, Tom McCarthy, Co-President of McCarthy Cook, said, “3535 Garrett will provide tenants with an exciting opportunity to occupy a completely repositioned, office project located next door to leading technology tenants such as Ericsson, Akamai, Abbott Labs, and Lenovo and a short walk to over 125k sf of retail amenities. ”

He added that, “The project has an efficient, rectangular floor-plate, above-standard parking ratio, and a state-ofthe-art HVAC system that provides cost savings and flexibility for tenants. Once the renovation is completed, the project will offer four sides of floor-to-ceiling glass on both floors and an unmatched environment for tenants in Santa Clara.”

McCarthy Cook has hired Kelly Simcox of Studio G Architects and Jon Pershing of OPI Builders to assist with the repositioning. Leasing and marketing will be led locally by Gregory M. Davies and Steve Horton of Cassidy Turley under the leadership of McCarthy Cook.

Rialto Capital Management is a diversified real estate investment and management company that is wholly-owned by the Lennar Corporation. This acquisition marks McCarthy Cook’s first joint venture with Rialto Capital.



Jan. 8, 2014

2-building office campus is the partnership’s first investment in San Diego

COSTA MESA, CA (January 8, 2014) – McCarthy Cook & Co. (McCarthy Cook) announced today the acquisition of Canyon Plaza, a 2-building, 213,000 square-foot office campus located in the Sorrento Mesa submarket of San Diego, CA. The campus was acquired in a partnership with AllianceBernstein U.S. Real Estate Partners, L.P. (AllianceBernstein), a real estate investment fund sponsored by AllianceBernstein, L.P., a global investment management firm with $447 billion of assets under management.

Lynn LaChapelle and Bob Prendergast of Jones Lang LaSalle represented the seller, a real estate investment fund advised by LaSalle Investment Management, a real estate investment firm with $47 billion of assets under management. McCarthy Cook and AllianceBernstein represented themselves in the transaction.

Canyon Plaza is currently 49% leased to CareFusion Corporation (NYSE: CFN), a global health care company that develops market-leading technologies that help hospitals measurably improve patient care. The project was built in 1986 and expanded in 1993. It was previously master-leased to Conexant Systems.

The approximately 100,000 square feet of existing vacancy will provide the new owners with the opportunity to transform Canyon Plaza into one of the premier, Class A, amenity-rich office campuses in Sorrento Mesa. The business plan will include the redevelopment of common areas and lobbies and the creation of project amenities such as a tenant lounge, café and fitness center. The San Diego office of Gensler Architects will lead the design efforts of the common areas and amenities. Jones Lang LaSalle has been retained to market the project to both full campus and multi-tenant users.

“Canyon Plaza offers an exceptional location within the submarket of Sorrento Mesa, which has been bolstered by the continued growth of the technology and health care industries,” observed Tom McCarthy, Co-President of McCarthy Cook. “The project has great bones, flexible floor-plates, great common areas and unique connectivity between the buildings. Once the renovation is completed, the project will offer an unmatched campus environment for tenants in Sorrento.”

This transaction marks McCarthy Cook’s first joint venture with AllianceBernstein U.S. Real Estate Partners, L.P.

About McCarthy Cook & Co.

McCarthy Cook & Co. was formed in 1995 as a real estate investment and development company. Since 1995, McCarthy Cook & Co. has completed approximately $4.5 billion in transactions representing approximately 10 million square feet of commercial office and mixed-used projects. During the same period, the firm has developed or has under development approximately 1.6 million square feet of office, retail and residential projects. The professionals at MCC specialize in the investment, development and operation of commercial real estate properties in the western United States.

About Alliance Bernstein

AllianceBernstein U.S. Real Estate Partners, L.P. is a real estate investment fund sponsored by AllianceBernstein, L.P., a global investment management firm with $447 billion of assets under management.