Northwestern Mutual Life Insurance Co. Inc. has acquired a leasehold interest in 3330 Hillview, a two-story, 29,744-square-foot office building in the Stanford Research Park in Palo Alto, Calif.
The Stanford Research Park was a cornerstone in what would eventually be known as Silicon Valley and it remains the home for companies on the leading edge of technology.
The building is 100 percent leased to Kirkland & Ellis LLP.
“3330 Hillview represents a unique opportunity for Northwestern Mutual to complete an acquisition in the growing West Coast market,” said Jory Halperin, director, Northwestern Mutual Real Estate Investments, LLC. “We are excited about making an investment in one of the top-tier office markets in the country with a property we believe will continue to generate strong returns for our policyowners.”
Northwestern Mutual Real Estate Investments, LLC is the wholly owned subsidiary and authorized representative of Northwestern Mutual for the management of Northwestern Mutual’s real estate portfolio.
An essential ingredient in maintaining Milwaukee-based Northwestern Mutual’s financial strength and ability to deliver value to policyowners is the performance of the company’s $174 billion general account investment portfolio, whose assets back the company’s insurance and annuity products.
The investment earnings generated by this portfolio produce capital that helps build the company’s strong financial base. They are also the primary determinant of the interest component of the dividend scale for traditional permanent life insurance policies.
Northwestern Mutual has the highest total cash value rate of return among major insurance companies. As part of a well-diversified portfolio primarily invested in investment-grade bonds and other high-quality fixed-income instruments, Northwestern Mutual invests in commercial mortgage loans that it originates in the private market directly with owners of commercial real estate. The portfolio also includes commercial real estate equity investments primarily in apartment, warehouse and office properties.
