CBRE Global Investors is investing $610m (€520m) in the Silicon Valley office market on behalf of investors that include the California State Teachers’ Retirement System (CalSTRS).

The investment manager is buying three office buildings at 3333 Scott Blvd in Santa Clara, California, according to sources with knowledge of the transaction.

They are the latest assets to be sold by Menlo Equities and Beacon Capital Partners from their large office development project, known as The Campus at 3333.

All parties involved in the transaction declined to comment.

The three office buildings, which comprises Phase III of the project, encompass 940,000sqft of space and are leased to Palo Alto Networks for the next 11 years.

In June, CBRE Global Investors and CalSTRS acquired Phase II, paying $162.5m for a 250,000sqft building leased by Hewlett Packard Enterprises, also for 11 years.

Phase I was bought in 2015 by Clarion Partners on behalf of the Oregon Public Employees Retirement Fund. The three office buildings, which encompass 450,000qsft and are leased to Hewlett Packard Enterprises and Hitachi, exchanged for $305m.

When the latest deal closes – which is expected in early September – Menlo and Beacon will have sold all of the assets that make up 3333 Scott Blvd for a combined $1.1bn.

According to sources, CBRE Global Investors is using multiple capital sources to fund the transaction, including CalSTRS, for which it manages a separate account.

The pension fund and investment manager have a long history of investing together, both through separate accounts and commingled funds.

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