Blackstone Sells San Jose Property for $82MM

JLL, Blackstone Real Estate Partners, Hines Real Estate Investment Trust, San Jose, Silicon Valley, Bay Area, San Francisco
2851 Junction Avenue in San Jose

New York City-based Blackstone Real Estate Partners just sold the 155,613 square foot office building located at 2851 Junction Avenue in San Jose for $82 million, or roughly $527 per square foot, according to public documents. This comes just months after the real estate investor had placed the asset on the market, which it acquired for $76 million, or $490 per square foot, in November of 2016. Blackstone had purchased the property from Hines Real Estate Investment Trust as part of a massive disposition of assets worth $1.162 billion.

The buyer of the property is an LLC associated with a Southern California address that is the home to law firm Allen Matkins. The law firm did not respond to questions before this story published.

Blackstone had hired JLL as the listing agent on the sale. Two people involved are Michel Seifer, a managing director in the San Francisco office, and Will Connors, a managing director in the Menlo Park office. Both the property owner and brokerage firm were not able to comment in time before this story was published.

The property is now fully occupied on a triple-net lease to TSMC North America (Taiwan Semiconductor Manufacturing Company). The lease runs through September 18, 2029. The asset was last renovated in 2013/2014 at a cost of approximately $9 million. The work done on the property included base building upgrades and TSMC’s extensive improvements.

The property was originally developed in 2002. The asset is a four-story building over a total of 6.3 acres. Blackstone had acquired the property from Hines on behalf of its commingled fund, Blackstone Real Estate Partners VIII.

West Coast Commercial Real Estate News