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Jul. 12, 2013

Office Building Acquisition Confirms Interest in Silicon Valley Still High

By Alex Girda, Associate Editor

Silicon Valley has been going from strength to strength over the past year as its office market has seen sustained growth. It doesn’t hurt that Apple is planning a massive spaceship-shaped HQ in Cupertino while the Googleplex in Mountain View is already a staple of the region. Now a new deal is set to catch the attention of investors as Grosvenor Americas becomes the new owner of a San Jose office building. Century Plaza II was bought from German company Deka Immobilien, represented in the transaction by Savills LLC, for an undisclosed amount.

Century Plaza II is a six-story, 99,126 square-foot office property located at 560 S. Winchester in San Jose, the largest city in Silicon Valley. The facility was completed in 2001, and has since been fully occupied. The building features LEED Gold Certification from the U.S. Green Building Council. The current tenant roster includes names such as Rockefeller Group Business Centers, Cushman & Wakefield, and Merrill Lynch Wealth Management. The facility offers direct access to I-280, and easy access to I-880 and Highway 17.

The building’s immediate proximity to one of the best-known luxury residential complexes in the area, Santana Row, is also considered an important selling point. The neighboring retail area offers high-end shopping options such as Gucci, Ferragamo and a Tesla dealership.

According to Grosvenor Americas’ Investment Manager Sommer Johnson, the newly acquired property provides the company with “strong cash flow, long-term upside, and good diversification for our portfolio of West Coast properties.” The company is reaffirming its position on the coveted office markets of the Western U.S. with a view for further investment in L.A., Orange County, Seattle and the Bay Area.

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