San Jose Office Park Commands $84M

In a deal brokered by HFF, Preylock Real Estate Holdings acquired Central Park Plaza, a six-building property currently housing 56 businesses.
Central Park Plaza

Transwestern Investment Group, on behalf of its TSP Value and Income Fund I, has sold Central Park Plaza, a 300,000-square-foot Class A office asset in San Jose, Calif. According to Yardi Matrix, Preylock Real Estate Holdings acquired the property for $83.8 million. The sale was funded by a $74 million loan. HFF represented the seller in the transaction.

The campus encompasses six two-story buildings on 19 acres and has a 1,800-square-foot retail component. Completed in 1986, Central Park Plaza underwent renovations in 2012, which resulted in upgraded courtyard and deli, new state-of-the-art conference center and high-tech speculative suites. The tenant roster includes 56 businesses, including HRS, Quorum, BayCal Financial, Coldwell Banker, Hill International and Regus.

Located at 2833–2841 Junction Ave. and 2860–2890 Zanker Road, the property sits in the vicinity of communities, parks, eateries and retailers. Major thoroughfares such as Montague Expressway, Interstate 880 and San Tomas Expressway, as well as various bus stations, provide easy access throughout the entire area.

Demand for Silicon Valley office space remains robust, with tech companies continuing to ink leases for large chunks of new stock. At the end of August, Federal Realty Investment Trust landed a roughly 300,000-square-foot tenant at 700 Santana Row in San Jose, which is slated for delivery next year.

Image courtesy of Transwestern