DivcoWest JV Sells San Jose Office Asset for $230M
- Jun 12, 2019
Jay Paul Co. has acquired 50 W. San Fernando St., a 353,527-square-foot office asset in downtown San Jose, Calif., from DivcoWest and Rockpoint Group. Yardi Matrix data confirms the LEED-certified property traded for $230 million, one of the Bay Area’s largest deals this year.
The seller had purchased the high-rise in December 2015 from CBRE Global Investors for $165.5 million, investing in capital improvements to the 30-year-old property last year. The asset now features a remodeled lobby, a fitness center and 13,950 square feet of new, leasable space on the top floor.
Constructed in 1989, the 18-story building is home to a varied mix of tenants including Merrill Lynch, Accenture and Bank of the West. The new owner will manage the property and has enlisted Newmark Knight Frank’s Phil Mahoney to oversee leasing operations.
With no major downtown office deliveries in the past decade, competition for high-end amenitized space is fierce. In April, data storage tech firm Cohesity signed for more than 60,000 square feet at another property less than a mile southwest of Jay Paul’s acquisition.