TMG Partners Bets on San Jose Tech Scene
- Aug 29, 2016
San Francisco—Bay Area developer TMG Partners has purchased a pair of office buildings in a section of San Jose, Calif., that appears to be taking off as even more of a tech hub than it already is. TMG announced its acquisition of 2460 and 2480 N. First St., which total 148,000 square feet, last Thursday.
The seller was TA Associates Realty of Boston, which had acquired the buildings in a January 2007 portfolio sale by Equity Office Properties Trust.
The financials on the transaction were not released, and TMG Partners declined to provide requested additional information to Commercial Property Executive.
The two Class B buildings were completed in 1986, according to data from Yardi Matrix. One of the buildings’ tenants is Google, which occupies 37,000 square feet at 2460 N. First St.
The asset is positioned directly across First Street from a 43-acre development parcel, the former site of a chip fab and also known as the North First Campus, that was purchased by Apple in August 2015 for a reported $138 million. Apple has also bought two other major parcels along North First Street in the past six months, according to TMG Partners.
“As TMG continues investing in the San Jose market, this acquisition provides an excellent opportunity to participate in a quickly growing neighborhood of dynamic players,” Matt Field, chief investment officer with TMG Partners, said in a prepared statement. “Our plan includes major renovations to the building systems, common areas and landscaping. With Apple’s major campus planned directly across North First Street, the neighborhood continues to thrive as a significant technology hub.”
The two properties’ location is in a part of Silicon Valley that’s home to major tech companies such as eBay, Cisco, Broadcom, Philips, Samsung, Qualcomm and Texas Instruments. The site offers quick access to I-880, Highway 101, SR 237 and Montague Expressway, is within minutes of the Mineta San Jose International Airport, and is only a very short distance from the Component station on the Santa Clara Valley Transportation Authority’s light rail system.
The project was listed and sold by Steve Hermann and Eric Fox of Cushman & Wakefield.
Image courtesy of TMG Partners