1545 Barber Lane is a 85,040 square foot Office/ R&D building located within Oak Creek Business park in Milpitas, California. The building is a partial two-story, high image office/R&D building comprising 85,040 SF on 4.47 acres. Built in 1981, the building was extensively renovated in 2001 and 2007. The building’s interiors were completely modernized by Cisco in 2001 and 2007.
Single tenant, 100% leased to Cisco Systems (though not occupied) at time of acquisition for remaining term of 12 months.
Cisco’s lease rate was at 2-3x current market rental value.
Re-positioning of property required in order to address outdated exterior facade, building entrance, and landscaping.
Ownership began negotiating directly with Cisco well in advance of the lease expiration date.
During lease negotiations, the building was “re-skinned” and its entrance was significantly enhanced so as to modernize its appearance and curb appeal.
Landscaping was upgraded as well as new signage added to increase visibility off of Interstate 880.
Based on the quality of renovations, Cisco’s standards were met and they subsequently re-leased the entire building on a 5 year term at fair market value.
Cisco made significant interior improvements adding additional value to property.
Shortly after Cisco’s occupancy, the project was successfully refinanced to return 100% of initial equity to investors.