By Meghan Hall
Several months after hitting the market, the owners of Los Gatos’ Northpoint Plaza have closed on the sale of the Class A Property. San Jose, Calif.-based Marwood Assets Management traded the property to a private for $11.8 million, according to public documents. The per square foot price for the 17,350 square foot property was just over $680.
“They are a value-add group and they’re looking to reinvest and buy other properties that they can improve,” said Howard Berry, Senior Vice President with Colliers International, the firm who was marketing the property for sale of the owner’s decision to sell. “It has some strong tenants, and they are looking to increase the value of other assets.”
Based on property documents, the buyer is a Nevada-based revocable trust associated with Grace and Vincent Chin. Documents show the pair also owns several buildings along Fruitvale Avenue in Oakland and nearly 44,000 square feet of commercial space in Carmel, Calif.
Located at 634 N. Santa Cruz Ave., the sale is the second in the property’s history since its initial construction in 2000. Marwood Assets Management originally acquired the plaza in 2013. The company’s website states that Northpoint was purchased out of foreclosure, and public documents state that at the time it traded for $1.7 million, or about $98 per square foot.
In 2018, Marwood Assets Management wrapped up renovations of the property, including a complete façade update, new signage and landscaping. The interior features modern finishes, office spaces, break areas and conference rooms. Since acquiring the property, Marwood has invested about $1 million in renovations.
The asset is currently 100 percent occupied by 13 tenants, a mix of national credit and local businesses, according to a property flyer circulated by Cushman & Wakefield. The average remaining lease term for tenants is about three years, with office and retail spaces renting for approximately $4.30 per square foot full service gross and $3.85 per square foot triple-net, respectively. The building has about 17,848 net rentable square feet. Current tenants include Thomas Foods, Los Gatos Alterations, Sereno Properties, Gianni’s Salon and Los Gatos United Soccer League. When Marwood first acquired the property, tenancy sat at about 50 percent.
“Los Gatos is one of those markets where people who live in Los Gatos want to have their offices [nearby],” explained Berry when the property hit the market. “We have a lot of tenants who live in the area who want to occupy those spaces.”
Northpoint Plaza is located within the Silicon Valley office market, specifically within the West Valley submarket, along with Cupertino, Saratoga, Campbell and West San Jose. Total base office inventory sat at around 13.7 million square feet during the third quarter. Just a fraction of that space—about 2.3 million—is located within Los Gatos. Of that two million, 906,000 square feet is considered as Class A.
Since its founding in 2013, Marwood has completed more than $1 billion real estate transactions. The company’s other assets include the Fremont Business Park, a three-building, 120,000 square foot office asset, Almaden Center II, a 65,400 square foot office property, and Rail Yard Place a 10.6-acre mixed-use, development currently under construction on Coleman Avenue in San Jose. Upon completion, Rail Yard Place will include 250,000 square feet of office and retail as well as 650 residential units.