Case Study

Summary

Tasman Tech is a 608,868 square foot office/R&D project in Milpitas, CA.  This transit-oriented project is located directly on the VTA Light Rail line, and is one light rail stop away from the Milpitas BART station. The project consists of eleven single story buildings and three, two story buildings spanning 47 acres.

Situation

  • Orchard Partners acquired the property in 2014 with partner Lionstone Investments.  Though the project was 90% leased at time of acquisition, there was significant near term tenant rollover and several tenants who were known to be planning to vacate at the end of their terms.
  • The property’s site improvements and exterior architecture were virtually untouched since being constructed in 1983-84. The project needed significant repositioning in order to become a best in class Office/R&D project.
  • Orchard Partners, with its architect and landscape architect, sought to activate the massive outdoor spaces which were unusable by tenant employees due to overplanting and ponds. Additionally, an architectural program was devised which gave the buildings individual identity, especially at the building entries.
  • The interiors of the vacant buildings were tired and unappealing. Orchard Partners and its architect designed welcoming lobbies, upgraded restrooms, and break areas which flowed seamlessly between indoor and outdoor areas.

Results

  • When vacancy occurred, Orchard Partners executed the market-ready interior and exterior plans on those buildings immediately, with the goal of transforming the project into the best in class in its market area.
  • Acknowledging that the project lacked walkable food and recreational amenities,  Orchard Partners established a plan to bring three community-based restaurants on site, as well as build a state of the art fitness center.  The restaurants and fitness center proved to be immensely popular with existing tenants, and a major draw for prospective tenants.
  • Through its marketing efforts and brokerage relationships, Orchard Partners raised occupancy from 55% to 80%, including completing four new leases totaling 100,000 square feet during the 2020-2021 pandemic.
  • Having achieved their financial objectives, Orchard and Lionstone exited the project in October, 2021.