SAN JOSE, CA – SEPTEMBER 27, 2017 – CBRE Capital Markets has arranged the sale of 1704 Automation Parkway, a Class A, two-story, ±84,208 square-foot office/R&D building located in San Jose.
CBRE Capital Markets’ Northern California team including Scott Prosser, Joe Moriarty and Jack DePuy represented the seller, Soma Capital Partners and Atlas Real Estate Partners. The Property was purchased by Nautilus Global Investment for $21,500,000.
The Property is 100% NNN leased to Quantenna Communications Inc. for over seven years, which commenced in October 2017. Chip Sutherland and Sherman Chan, also with CBRE, successfully arranged the lease on behalf of Soma/Atlas.
“With a scarcity of building offerings in the North San Jose submarket and throughout the Silicon Valley, especially one that is 100% leased for the next seven years that offers a stable income stream from a quality tenant, both the buyer and seller were thoroughly pleased to have received such a terrific outcome.” shared Scott Prosser, Executive Vice President, CBRE.
The two-story building, built in 1997, sits on 5.6 acres on Automation Parkway and has recently undergone renovations, including a two-story lobby and exterior upgrades. The location is in proximity to Brokaw Road/Murphy Avenue/Hostetter Road, a main thoroughfare that connects Interstates 880 and 680, which directly connects to Highways 101, 237, and 87 and Interstate 280. It provides excellent access throughout the Silicon Valley and the greater Bay Area. This strategic location allows employers to draw employees from the east and west sides of the San Francisco Bay Area.
In addition, 1704 Automation Parkway is just over two miles from the soon-to-be-completed Milpitas BART Station. The station is anticipated to open in late 2017, and will be served by two BART lines that operate every 7.5 minutes. The Property is also located just under two miles away from the under-construction San Jose Berryessa BART Station. System testing will begin at the end of the year with the station anticipated to open in 2018.
North San Jose, International Business Park and Milpitas have been experiencing tremendous growth in residential development as a result of progressive planning and transportation policies. A total of 13,800 new residential units have been recently completed, are under construction or are in the planning/proposed phases in North San Jose and Milpitas Increased demand for higher-end amenities has emerged in response to the influx of high-paying jobs and modern housing options.
The CBRE Capital Markets’ Northern California team whom arranged this successful transaction provides investment advisory and debt and structured finance solutions for institutional investors, private capital and corporate owners/users throughout the West Coast.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.