TBI-Mission West Finances Latest Morgan Hill Development

MORGAN HILL – TBI-Mission West LLC, a joint venture of Toeniskoetter & Breeding, Inc. (TBI) Development and Mission West Properties, announces that it has refinanced a major property at its Madrone Business Park in Morgan Hill. Cupertino National Bank has provided an $18 million, 10-year mortgage for the new 152,000-square-foot headquarters of contract manufacturer Paramit Corp.

“We were extremely pleased to not only receive permanent financing in a difficult Silicon Valley real estate market, but to receive proposals from five lenders,” TBI Development President Brad Krouskup said. “We believe this availability of financing is testament to the strength of our partnership, the management of Paramit Corp. and the stability of the Morgan Hill market.”

Krouskup said the Morgan Hill commercial real estate market participated neither in the spike in real estate prices during the Internet boom nor the sharp fall after the Internet bubble burst. During the period between the hot market of 2001 and a reappraisal for the current loan, the value of the Paramit property fell only 5%, he said.
Stephen Heitel, the bank’s executive vice president and chief operating officer, said, “Originally as the construction lender and now as the provider of take-out financing, Cupertino National Bank is extremely pleased to be participating in the growing Morgan Hill market.”

Heitel said Cupertino National Bank, a wholly owned subsidiary of Greater Bay Area Bank, places great value on its continuing relationship both with Toeniskoetter & Breeding and Mission West.

Paramit, which moved to Morgan Hill from San Jose last year, provides turnkey electronic manufacturing services and fully integrated testing. Paramit manufactures and tests products for leading OEM’s in the telecommunications and networking, medical instrumentation, digital media, R.F. and semiconductor equipment industries.

Last summer, TBI completed three buildings in the 110-acre Madrone Business Park totaling 350,000 square feet for the new headquarters of Media Arts Group Inc., which manufactures and markets the art works of Thomas Kinkade. During the fall and winter, a 160,000-square-foot headquarters for Condor Systems, a Courtyard by Marriott, a Marriott Residence Inn and a Chevron Service Station also were completed.

“Five sites totaling 24 acres remain uncommitted, and we are entertaining proposals for build-to-suits,” Krouskup said. “We also have available two, new single-story office/R&D buildings, totaling 100,000 square feet.”

Founded in 1983, Toeniskoetter & Breeding, Inc. Development has developed more than two million square feet of buildings and serves as managing general partner for a number of diversified real estate properties throughout Santa Clara and Santa Cruz counties. In addition to the Madrone Business Park, TBI Development has developed the adjacent Cochrane Business Ranch in Morgan Hill. Other projects include 450 West Santa Clara Street, the O’Connor Health Center and the western headquarters for Integrated Circuit Systems, all in San Jose; Gateway Square in Campbell and the Granite Creek Business Center in Scotts Valley.

In 1999, TBI Development strengthened its 15-year relationship with developer Carl Berg through the formation of TBI-Mission West LLC. This company was formed to pursue the development of the Madrone Business Park, where TBI acts as the development and managing general partner.

Created in 1998 and based in Cupertino, Mission West Properties is a is a real estate investment trust (REIT) engaged in the management, leasing, marketing, development and acquisition of commercial R&D properties, primarily in Silicon Valley. Mission West Properties includes substantially all of The Berg Group’s operating properties, which total more than five million square feet of buildings. Mission West Properties is listed on the American and Pacific Coast exchanges under the symbol MSW.