Blackstone offloads Silicon Valley commercial assets for $222M

A group of investors led by DRA Advisors has picked up a portfolio of 10 office, industrial and commercial buildings across Silicon Valley for $222 million.

The unidentified investors headed by New-York-based DRA bought four buildings in Milpitas, two in San Jose and four in Santa Clara, the San Jose Mercury News reported, citing public documents. The sellers were four affiliates of New York-based Blackstone.

Blackstone bought the South Bay buildings and others across the U.S. through its purchase of PS Business Parks in 2022 for $7.6 billion.

The DRA-led investors paid $75 million to buy four buildings at 901, 1001, 1123 and 1151 Cadillac Court in Milpitas. Together, the buildings total 301,600 square feet. The price works out to $249 per square foot.

The group paid $57 million for a 213,600-square-foot building at 591 North King Road, and $17 million for a 22,200-square-foot building at 1721 Rogers Avenue, both in San Jose. The combined price works out to $314 per square foot.

And it paid $73 million for four buildings that include the addresses 3401, 3501 and 3521 Leonard Court in Santa Clara. The relative size of each building was not disclosed.

DRA Advisors, co-founded by David Luski in 1985, invests in multifamily, industrial, retail and office properties. At the end of last year, it had $12.9 billion in assets under management, including 579 properties in 34 states, according to its website.

Last year, the firm hired two brokerages to sell 24 shopping centers, mostly in the Midwest.

— Dana Bartholomew