Large Office Transactions in Silicon Valley Reaffirm Market Appeal
- Apr 03, 2014
The San Francisco Bay Area’s growing appeal is substantially improving the region’s office sector. The fact that the top three tech markets in the country are all located here, San Francisco, The Peninsula and Silicon Valley, is evocative of investor confidence, and as a result, development and asset acquisitions have ramped up during the past few years.
Recently, a North San Jose office campus traded hands in a deal worth $52.5 million. Buyer PSAI Realty LLC acquired the Montague Oaks Business Park from Eagle Ridge Partners in the deal that was arranged by Cassidy Turley representative Eric Fox, according to the Silicon Valley Business Journal.
The property is located at 611-697 River Oaks Parkway and offers great access to the nearby Montague Expressway, Interstate 880, the San Jose International Airport and Highways 101, 237 and 87. The 1983-built campus offers a total of eight single-story office/R&D buildings that Eagle Ridge Partners had acquired from original developer McCandless Properties back in 2011. The property has gone through a number of renovation processes and currently features a number of tenants that occupy about 93 percent of the available space of the campus.
Another office campus transaction was recently completed when Orange County-based Bixby Land Co. paid a reported $110 million for the Lake Park Business Center in Santa Clara. The 19.3-acre campus was acquired from seller Divco West, making it the buyer’s largest Silicon Valley move to date. According to SVBJ, the new owner will also invest a further $20 million into the repositioning of the sprawling, 400,000-square-foot campus.
The seven two-story buildings that comprise the campus are surrounded by a park-like setting featuring a small lake, outdoor seating areas and fountains. Transportation at Lake Park Business Center is facilitated by the nearby light rail line, easy highway access, as well as airport access.
Image courtesy of divcowest.com