By Jon Peterson
San Jose-based Barry Swenson Builder has acquired the 76,606 square foot property located at 2290 North First Street in San Jose for $17.3 million or $225 per square foot, according to sources that are familiar with the transaction.
Cole Strombom, an acquisition liaison and development manager, declined to comment on the purchase price for this story.
[contextly_sidebar id=”M2itXlkeblLE0zmDrglBJWzDm8oB8cVG”]The seller of the property is TA Associates Realty. This pension fund manager has its home office in Boston and has a West Coast regional office in Newport Beach. This transaction was put together as an off-market transaction between the two companies.
Both the buyer and seller were represented in the transaction by the San Jose office of Cushman & Wakefield. The buyer worked with Jon DeCoite and Mike Baker, and the seller went with Steve Horton.
“I think that the North San Jose market is an attractive region. There is not any new multi-story product being added to the marketplace. The property that we bought is a three-story complex, and there should be good demand for our property,” said Strombom.
The asset that Barry Swenson bought is now 85 percent occupied. There are two spaces that are currently available for lease. One of these is the entire third floor of 9,032 square feet.
Cushman & Wakefield will be involved in the leasing of the property going forward, as well. “We have seen significant rent increases for office space in the North San Jose market over the past few years. I think that there is strong demand for multi-tenant space going forward,” says DeCoite. He is a senior vice president with the firm.
He sees that the market is doing better than some of the numbers would indicate. “Through the third quarter of this year, we see that the vacancy in North San Jose is 20 percent. But a good majority of this space is targeting single-tenant users. If you take this space out, then the actual vacancy for multi-tenant space is much closer to where the vacancy is in the San Jose Airport sub market, which is at 11.4 percent,” said DeCoite.