Downtown San Jose continues its commercial real estate renaissance, and in another sign of the investors’ continued interest in the Silicon Valley city, Beacon Capital Partners acquired the 226,000 square-foot building at 160 W. Santa Clara St. in San Jose for $101.5 million, or just over $449 per square foot. The seller was PNC Realty Investors, which had purchased in property in January of 2015 for $80,952,000, according to public records.
The Silicon Valley Business Journal first reported the sale.
The 15-story tower sits on the corner of West Santa Clara Street and North San Pedro Street, and today it is the corporate headquarters for ThreatMetrix, a risk solutions company owned by LexisNexis. Other tenants in the building include the Fremont Bank and KBM Hogue, a commercial furniture distributor. The property also includes an underground garage, which holds up to 528 vehicles.
The building is across the street from the Santa Clara Street entrance to the San Pedro Square, San Jose’s downtown Farmer’s Market and retail destination.
The last 12 months marked a significant uptick in commercial and residential real estate activity in the self-proclaimed capital of Silicon Valley. A number of recent residential projects have been proposed that may reshape the city’s skyline and provide much-needed housing alternatives. A 350-unit project had just been proposed for the city’s three parcels of land at 383 Delmas Avenue and 425 and 433 Auzerais Avenue.
In December of 2017, Trumark Homes spent $21 million to acquire a land parcel in downtown San Jose with plans for a new community adjacent to the popular San Pedro Square Marketplace. The community will offer 78 new townhomes.
Earlier this year, Terrascape filed for a development permit to build two 19-story residential towers to be located in San Jose not far from a growing collection of other residential communities and offices as well as the city’s busy San Pedro Square. The towers would add 653 residential units to the downtown core.
And also announced this year is KT Urban’s proposed development called The Aviato, an 18-story, 302-unit development that would include around 10,000 square feet of retail on the ground floor. This project is planned for 199 Bassett Street in San Jose, just east of the Guadalupe Freeway—Highway 87 and west of Coleman Avenue.
On the commercial property side, the bulk of the activity has been occurring around Diridon Station, where Google and Trammel Crow are building a multimillion square foot office campus. However, this activity ignited an interest in all sorts of properties across the city.
An entity associated with WeWork spent $56.3 million to acquire the historic Bank of Italy building and adjacent parking lot.
In December of 2017, the two-building Riverpark Towers, which is just over 600,000 square feet, was sold to a partnership between San Francisco-based DivcoWest and Rockpoint Group for $285 million, or roughly $473 per square foot.
This was followed by the Toronto-based Brookfield Asset Management buying the two-tower, 411,000 square-foot Towers @ 2nd for $128 million, or just over $311 per square foot, as well as the South Korean conglomerate Aju Group buying the Westin San Jose, previously known as the The Sainte Claire Hotel for $64 million, or just over $374,000 per room.