KBS Sells Portion of San Jose Office Campus
- Jun 27, 2018
KBS Real Estate Investment Trust II has completed selling three buildings from an eight-property office campus in San Jose, Calif., as it begins rebranding the former Corporate Technology Centre as District | 237.
The Newport Beach, Calif.,-based REIT has sold the AT&T building at 400 Holger, as well as 450 Holger and 475 Holger. The prices and buyers were not released. KBS REIT II bought the campus in April 2013 from Equity Office for $239 million.
The remaining buildings, which will soon be vacant, have a total of 416,000 square feet of rentable space. They range in size from 46,700 to 100,000 square feet. District | 237 presents an opportunity for one large tenant to lease all five buildings or for multiple tenants to lease their own buildings.
“The dynamic Silicon Valley market is a draw for many employers due to its appeal to a young talent pool,” Brent Carroll, SVP & acquisitions/co-director, asset management, said in a prepared statement. “We believe the planned renovation of the property puts KBS at the center of an ever-growing market with the potential to add great value to the well-located property.”
Planned renovations include a 60-foot high monument sign allowing tenants to have prominent signage facing Highway 237, updated landscaping and modified exteriors. The building at 350 Holger Way is undergoing a complete interior renovation that will include a new lobby, a private tenant lounge and outdoor amenity area and gym. Open office work spaces have been created and collaboration areas and an executive conference center have been added.
The property and its locations should be attractive to a wide range of technology tenants, according to KBS. In addition to the highway, District | 237 is located within 10 minutes of San Jose’s Minetta International Airport and 15 minutes of the San Jose CBD. It is also near retail and lodging amenities including Courtyard by Marriott San Jose and Hyatt House San Jose/Silicon Valley.
“We believe San Jose remains a popular place for growing technology businesses and tenants will benefit by the identity the freeway frontage offers,” Rodney Richerson, regional president of KBS, said in a prepared statement.
KBS Realty Advisors and its affiliated companies have completed transactions totaling more than $38 billion via 16 separate accounts, six commingled funds, five sovereign wealth funds and eight REITs.
More KBS California Moves
Last month, KBS REIT III signed a lease with accounting and consulting firm BPM to occupy 21,924 square feet of office space at another San Jose building—10 Almaden. The 17-story, LEED Gold-certified building has 309,255 square feet of office space and 1,500 square feet of ground-floor retail. Other tenants include Citibank, Cushman & Wakefield, Kidder Mathews and Adobe.
Also in May, KBS REIT III signed 61,181 square feet in leases with existing and new tenants at The Towers at Emeryville, a three-building, Class A office park in Emeryville, Calif. The buildings—1900, 2000 and 2200 Powell St.—have a total of 815,018 square feet and are located about a 15-minute drive northeast of downtown San Francisco.
Images courtesy of KBS Realty Advisors