Shorenstein Grabs 4-Building Tech Campus in North San Jose for $100M
- Sep 29, 2014
Shorenstein Properties L.L.C., has acquired four buildings in Champion Station, an eight-building, low-rise office and R&D campus in North San Jose, from TMG Partners for a reported $100 million.
JLL represented the seller in the transaction.
“There was broad investor interest in this opportunity and tenant activity in the immediate area continues to escalate,” Michel Seifer, JLL’s managing director, capital markets, told Commercial Property Executive. “This really demonstrates the continued improvement, maturation and importance of the north San Jose submarket and how this market has been transformed by the entertainment (Levi Stadium), retail and housing development that has occurred in the neighborhood.”
Located at 110-180 West Tasman Drive, the four buildings total 426,000 square feet and are currently fully leased to Cisco on a short-term basis.
Champion Station is approximately 1.5 miles from Levi’s Stadium, the recently opened home of the San Francisco 49ers, as well as extensive retail and restaurant amenities. It is also surrounded by several transit alternatives including public transit (light rail, bus, Amtrak, Caltrain, free shuttles) and is within easy access of Highways 101, 237 and 880 and other major thorough fares linking the property to San Francisco, the Peninsula, East Bay and downtown San Jose.
This is Shorenstein’s first-ever acquisition in the San Jose market.
“This is an opportunity to reposition a well-located campus in a market with strong leasing demand and a dearth of available blocks of office space to accommodate large users,” Douglas Shorenstein, Shorenstein’s CEO & chairman, said in a company statement.
TMG Partners purchased all eight buildings in Champion Station from Cisco last year, and added new conference rooms, employee sport courts and updated the finishes, among other renovations.
The North San Jose area has seen major ongoing capital investment of late. Two major mixed-use developments, totaling more than $7 billion, have been proposed nearby with one expected to begin construction in 2016.
The purchase is Shorenstein’s first investment completed for the Shorenstein Realty Investors Eleven, a fund that was formed earlier this year with $1.2 billion in committed capital.