SAN FRANCISCO–(BUSINESS WIRE)–DivcoWest Real Estate Services, LLC, a leading vertically integrated real estate investment firm, announced today that they have entered into a new $300 million venture with the California State Teachers’ Retirement System. The joint venture will focus on acquiring core and core plus commercial real estate assets in growth-oriented markets throughout the United States.

The venture’s investment activities will concentrate on commercial real estate opportunities in targeted markets that are characterized by strong local economies and highly qualified workforces. Another key characteristic of these markets is their substantial tenant bases in dynamic, new economy industries. Cities in five states plus the District of Columbia have been identified as target markets. In California they include San Francisco (including the greater Bay Area), Los Angeles and San Diego. Other target markets include Seattle, WA; Boston, MA; New York, NY; and Austin, TX.

“We are so appreciative for our relationship with CalSTRS and will strive to continue to deliver results to prove that we deserve the faith and trust they have shown in us as a partner.”

DivcoWest and CalSTRS have a 15-year history of investing together. Over this time, DivcoWest has put the more than $1.5 billion that CalSTRS committed into various DivcoWest-sponsored investment vehicles. DivcoWest has invested CalSTRS capital across various assetclasses, return profiles, and investment structures, including commingled funds, joint ventures and separate accounts.

Mike DiRé, director of real estate at CalSTRS, said, “We continue to commit capital to DivcoWest not only because of our partnership’s financial success, but because they’ve earned our trust over a long period of time. They’ve built their professional management style on transparency and integrity—which is especially significant to CalSTRS, as we’re a public pension fund. We benefit from DivcoWest’s expertise and leadership in providing and managing commercial space to the innovation and technology communities.”

Don Palmieri, portfolio manager in real estate at CalSTRS added, “In addition to an outstanding investment return history, DivcoWest’s deep knowledge and expertise in their target markets, excellent relationships with innovation and technology leaders and the strength and quality of their team make them an ideal partner for CalSTRS.”

Stuart Shiff, founder and CEO at DivcoWest, added that: “We are so appreciative for our relationship with CalSTRS and will strive to continue to deliver results to prove that we deserve the faith and trust they have shown in us as a partner.”

SAN JOSE, CALIF. – December 20, 2017 – A joint venture between DivcoWest and Rockpoint Group has completed the purchase of Riverpark Towers, a 600,000 square foot Class A office complex close to Diridon Station in downtown San Jose.

Consisting of two 16-story towers built in 1987 and 2009, Riverpark is currently 85% leased. The property includes an adjacent 10-story parking garage with spaces for 1,397 cars. It also offers tenants onsite amenities including a coffee and wine bar, a bike sharing program, a dining lounge, a game room and a fitness room with showers. Riverpark is the closest Class A office complex to Diridon Station, downtown San Jose’s main transit hub, and sits adjacent to the city’s Guadalupe freeway (SR-87).

DivcoWest and Rockpoint plan to strategically invest capital into the building and reinvigorate its appeal to a broad base of tenants. The venture believes the property is ideal for tenants seeking a strong transit-served business location surrounded by access to lifestyle, retail and residential amenities. More than 2,000 residential units are under construction in the immediate neighborhood and Riverpark is just two blocks from the San Jose Convention Center, several hotels and numerous restaurants.

This is DivcoWest’s second purchase of a major office building in downtown San Jose in 2018. In March of this year DivcoWest acquired 2 West Santa Clara, an 84,000 square foot office building across from the SCVTA’s Santa Clara Station. In addition, in 2015 DivcoWest and Rockpoint formed a joint venture to acquire 50 West San Fernando in San Jose.

Cambridge/Somerville/Boston (October 23, 2017): DivcoWest joined Cambridge Mayor E. Denise Simmons, Cambridge City Manager Lou DePasquale and elected officials from the Commonwealth of Massachusetts to celebrate the long-awaited re-launch of the 43-acre development site now known as Cambridge Crossing (“CX”). The group gathered to ceremoniously mark the start of construction of 250 North Street, the first commercial office building to be built at Cambridge Crossing. 250 North Street will be a 430,000 square-foot science and technology building, and the first phase of a new neighborhood retail district to be built at the heart of CX.

Cambridge Crossing
~ 43 Acres
~ 4.5 msf of commercial, residential & retail
~ 11 acres of open space
~ 2 MBTA Stops

Cambridge Crossing is adjacent to Kendall Square and centered within one of the highest concentrations of talent and intellectual capital in the world. Formerly a rail yard, CX will be a new mixed-use neighborhood with research facilities, residential units, and retail amenities in a compact, walkable, and transit- and bicycle-friendly plan that will become an integral part of the existing East Cambridge neighborhood.

The site will be directly served by two MBTA transit lines. The new Lechmere Station, part of the Green Line Extension commencing construction in December 2017, will be located directly on the CX site, and the Orange Line Community College Station is steps away.

At full buildout, CX will be comprised of approximately 2.1 million square feet of state-of-the-art science and technology space, approximately 2,400 new residential units in addition to approximately 2,500 existing units, and approximately 100,000 square feet of retail thoughtfully curated to deliver a unique and local neighborhood experience. The project will also include approximately 11 acres of activated public open spaces, highlighted by a central common area.

DivcoWest founder & CEO Stuart Shiff spoke of his company’s desire to create a world-class development at CX to connect the hearts and minds of future generations of innovators and disruptors with the talent required to challenge the status quo and achieve life-changing and life-saving visions.

“Our goal as a company has always been, and always will be, to add value whenever and wherever we can. If we can help create places where innovators can attract, nurture, and ultimately retain talent, then we will have done our job and given long term value back to those innovators and the community at large,” Shiff said.

“Great companies driving real change think in terms of forever, not in terms of cycles and that’s exactly how we are approaching CX. This is an area surrounded by the human electricity of innovation and education, where more Nobel laureates have come from than anywhere in the world. On behalf of DivcoWest, we are thrilled to embark on our long term commitment to develop a world class community within this former rail yard – a place in which companies, researchers, start-ups, entrepreneurs, visionaries and Nobel laureates, can live, work, play and thrive,” Shiff added.

“The City of Cambridge is thrilled to see Cambridge Crossing evolve into this innovation-driven community. It is important that we continue to provide places that allow our local colleges and universities to collaborate with entrepreneurs and industry leaders in solving real world issues, and in developing the next generation of companies,” said the Honorable E. Denise Simmons, Mayor of Cambridge.

“We are making the investments in retail, open spaces and infrastructure that are necessary to make Cambridge Crossing a thriving urban neighborhood and to attract existing commercial office tenants, as well as new tenants locating to the area for the first time,” said Tom Sullivan, President of DivcoWest’s development division. “We are thrilled to launch the project with a new name and brand identity to signify this ‘game changing’ moment for the largest transit-oriented site in the Greater Boston region. We want to thank Cambridge, Somerville, Boston, the State of Massachusetts and the MBTA for their unwavering commitment to working with DivcoWest to make Cambridge Crossing a reality.”

DivcoWest invited over 300 people to share in the launch of the new brand and showcase plans for the Cambridge Crossing. To represent the future of CX and its place for innovation and the thinkers of tomorrow, DivcoWest invited Nuvu, a full-time innovation school in Cambridge, to participate in the groundbreaking ceremony. Nuvu used a human powered bicycle to dig the dirt officially breaking ground alongside elected officials and attendees.

WASHINGTON, DC. – October 10, 2017 – DivcoWest has completed the purchase of 1133 15th Street NW, an approximately 213,000 square foot office building located on the border of the CBD and East End submarkets of the nation’s capital.

The 12-story building, which sits across from Midtown Center, the future headquarters of Fannie Mae, is currently approximately 90 percent leased to a diversified group of tenants.

“The area that surrounds 1133 15th Street is experiencing a resurgence of commercial activity thanks to an influx of creative tenants and the emergence of a vibrant live-work-play environment. We believe this asset is particularly well positioned to attract a broad range of tenants, especially creative and innovation companies, given the surrounding amenity base, access to public transportation and proximity to popular residential neighborhoods,” said Ryan Friend, Senior Director, Acquisitions at DivcoWest.

1133 15th Street received Gold certification under the U.S. Green Building Council’s LEED rating system in 2011. The building provides tenants with underground parking and an amenity package that includes a conference facility, fitness center and on-site deli. DivcoWest plans to initiate a capital improvement program designed to further upgrade the building lobby and common areas.

SAN DIEGO, CALIF. – September 14, 2017 –DivcoWest has completed the purchase of DiamondView East Village, a 325,000 square foot, 15-story Class A office building with ground floor retail adjacent to Petco Park in the East Village submarket of downtown San Diego.

DiamondView East Village was built in 2007 and is considered to be one of the premier office buildings in downtown San Diego. In addition to several retail tenants, the building houses a 37,000 square foot Fit Athletic Club. The building also offers a 4,900 square foot rentable event space on the top floor of the building, which has overlooking views of the ballpark.

The building is within nine city blocks of more than 2,900 Class A apartments and almost 7,000 units either under construction or in the development pipeline. Also nearby is the Westfield Horton Plaza, a recently renovated urban retail center with more than 60 retail stores. There are more than 100 restaurants and cafes within a five-minute walk of DiamondView East Village. The building is also close to several stops on the city’s Metropolitan Transit system, four miles from San Diego International Airport and a mile from on ramps to Interstate 5.

This is DivcoWest’s second recent purchase in downtown San Diego having also completed the acquisition of a mid-rise office building at 1420 Kettner Boulevard this month.

SAN DIEGO, CALIF. – September 18, 2017 –DivcoWest and its joint venture partner Ocean West announced the purchase of the leasehold interest in 1420 Kettner, a seven-story 123,000 square foot Class B office building in downtown San Diego’s Little Italy neighborhood. The acquisition of the fee interest in 1420 Kettner by DivcoWest is expected to be completed in the near term.

Built in 1985, DivcoWest plans to invest significant capital into the building to bring it up to full Class A creative standards and reinvigorate its appeal to a broad base of tenants.

The property is ideal for tenants seeking signature boutique creative space in a neighborhood served by restaurants, retail and public transit. The property is also surrounded by numerous residential buildings and several planned mixed-use developments.

September 6, 2017 – Divco West Real Estate Services, LLC (“DivcoWest”), a privately-owned real estate investment firm headquartered in San Francisco, has held its final close on DivcoWest Fund V (“Fund V” or the “Fund”), its fifth commingled value-add investment fund. Exceeding its US$1.5 billion target, Fund V’s commitments total approximately US$1.585 billion, making it DivcoWest’s largest fund to date with approximately 80% of the commitments from existing investors. DivcoWest’s prior fund closed in 2014 with US$976 million of total commitments and has to date returned over 130% of invested capital.

Stuart Shiff, DivcoWest’s founder and Chief Executive Officer commented: “We are truly grateful to our investors who have entrusted us with their partnership in this next venture. We are pleased to have 25% of Fund V already designated to what we believe is an attractive group of investments. We look forward to continuing the creation and management of a dynamic and disciplined portfolio of real estate and real estate related investments for our investors.”

The Fund’s investors represent a diverse group of more than 40 institutional investors, including domestic and foreign public and private pension funds, financial institutions, endowments and high net worth individuals.

With over twenty years of real estate investment and asset management experience in innovation markets, DivcoWest has established strong tenant relationships among some of the largest innovation firms. DivcoWest seeks to add value through a combination of capital investment, repositioning, redevelopment and leasing, as well as by leveraging its vertically-integrated platform and experience through multiple market cycles.

In common with DivcoWest’s four prior funds, Fund V will primarily invest in office and R&D properties located in select innovation markets characterized by strong education, employment, amenities and transportation systems with high barriers to entry including but not limited to the San Francisco Bay Area, Boston, MA, Southern California, Washington, DC, New York, NY, Seattle, WA and Austin, TX.

DivcoWest engaged Greenhill & Co. as the global placement agent and Goodwin Procter LLP represented DivcoWest as fund counsel in the establishment of Fund V.

SAN MATEO, CALIF. – April 24, 2017 –DivcoWest has completed the purchase of 101 S. Ellsworth, a Class A office building viewed as a best in class asset in the heart of a supply constrained downtown San Mateo market.

Situated just one block from downtown San Mateo’s Caltrain station, the 88,000 square foot, six-story building sits in a walkable neighborhood surrounded by many retail and restaurant amenities. Close proximity to Caltrain service and easy access to several freeways puts employees of tenants in the building just 25 minutes from San Francisco and residential locations throughout Silicon Valley.

101 S. Ellsworth has averaged 99 percent occupancy over the last 10 years and is one of only five Class A office buildings in San Mateo’s downtown core offering more than 80,000 s.f. of space.

SAN JOSE, CALIF. – March 16, 2017 –DivcoWest has completed the purchase of 2 West Santa Clara, a historic office building in the heart of downtown San Jose. Terms of the transaction were not disclosed. The acquisition is part of a joint venture with an investment group led by Gary Dillabough.

Built in 1910 and extensively renovated within the last few years, 2 West Santa Clara is one of the first examples of steel-framed office construction in California and was originally the home of First National Bank. More recently, the building was the headquarters of Bank of the West and, later, lumber company Pacific States Industries.

The 83,896 square foot property was expanded in 1927 with the addition of a nine-story annex. The proposed business plan will include a full rehabilitation to provide smaller tenants the unique opportunity to have a full floor presence with four side window lines and excellent views.

The building sits at the corner of West Santa Clara and North First streets, located on one of San Jose’s busiest thoroughfares, just five blocks east of the Guadalupe Freeway (SR-87) and adjacent to the Santa Clara Valley Transportation Authority’s Santa Clara Station. This major light rail transfer point is served by 16 VTA bus routes as well as the Highway 17 Express bus from Santa Cruz. Additionally, the Property is situated proximate to the entrance of the future Downtown San Jose BART station, positioning 2 West Santa Clara as one of the closest office towers to the BART.

Ritchie Commercial represented the Buyer and the Seller in the transaction.

LOS ANGELES, CALIF. – March 01, 2017 –DivcoWest has completed the purchases of Glendale Plaza, a 547,300 square foot Class A office tower at 655 North Central Avenue in Glendale, in addition to a condominium interest in The Telephone Building, a Class A creative office, telecom and retail building at 1314 7th Street in downtown Santa Monica.

The two acquisitions expand DivcoWest’s already significant footprint in the Los Angeles market, which currently includes Continental Grand Plaza, a 482,000 s.f. office complex in El Segundo and Water’s Edge, a 6.5 acre creative campus in Playa Vista.

Both Glendale Plaza and The Telephone Building are regarded as best in class for their respective submarkets, being well located in proximity to both amenities and transportation.

Glendale Plaza is predominantly leased to entertainment and financial-services firms and within walking distance of more than 3,500 new apartment units as well as two of greater Los Angeles’ best retail malls: Americana at Brand and the newly renovated Glendale Galleria. A LEED-Platinum certified property, Glendale Plaza is a 20-minute drive away from Bob Hope Airport in Burbank and features sweeping views of downtown Glendale and the San Gabriel mountains.

The Telephone Building is fully renovated and leased to tenants that include one of Southern California’s premier venture capital firms and two renowned restaurants – Cassia and Ester’s Wine Shop and Bar. The building is within walking distance of Santa Monica’s new Metro Expo train station, the Third Street Promenade and many high-end businesses, restaurants and retailers.