Former Garrison Investment Group brokers Andy Kwon and Eric Rosenthal have launched their own firm with a $54.5 million acquisition.
Machine
Investment Group, the pair’s new real estate investment platform, acquired Stevens
Creek Executive Park in San Jose, California.
The 9.23 acre site consists of 164,986 s/f of existing offices and entitlements for 582 multifamily units, 10,000 square feet of retail, and additional office space. Details are in the attached press release.
“Our first acquisition together
as Machine exemplifies who we are as investors, and is consistent with our
track record of successfully pursuing middle-market investment opportunities at
Garrison,” said Kwon, managing partner
of Machine Investment Group.
“We acquired Stevens
Creek Executive Park at an attractive basis and we have an open mind about the
possibilities for its best use. For example, multiple factors indicate that
multifamily residential, both market-rate and affordable, should be in high
demand in this location.”
Centrally located within
the Cupertino Union School District, less than two miles from both Apple’s
global headquarters and the Santana Row luxury shopping district, the Stevens
Creek Executive Park was sold by FortBay LLC, in a joint venture with Colony
Capital, which paid $53 million for the site in 2016.
According to Rosenthal, “Machine seeks out opportunities within all major and specialty property types, located in emerging and existing institutional markets across the United States.
“The common theme is that these are growth
markets with diverse demand generators that offer attractive yields and advantageous
entry points. In the case of our
investment in Stevens Creek Executive Park, we see this section of San Jose as
more than a ‘tech market.’ Other less
cyclical businesses like health care lend just as much support to our belief in
the local job market, and long-term demand fueling an already supply
constrained residential
market.”
Before launching Machine Investment Group,
Kwon and Rosenthal spent a decade at Garrison where they invested over $1.5 billion
of equity together.
“We have invested together for many years with
considerable success, and Machine is the natural evolution of our journey in
real estate,” Kwon said.
“We’re pleased to officially launch Machine as
we close on Stevens Creek Executive Park. We are looking forward to adding more
opportunities to our platform, especially as current events bring dislocation
to many of our target markets.”
