By Meghan Hall
Embarcadero Capital Partners, a Belmont, Calif.-based investment, management and development firm has expanded its portfolio in San Jose with the recent purchase of 2125 O’Nel Drive for $24.15 million, or around $223 per square foot. The seller was PSAI Realty Partners, and the transaction closed in December of 2018, according to public documents.
The two-story, 108,000 square foot office building was originally built in 1984 and is what Embarcadero Capital Partners categorizes as a “Creative Office Redevelopment,” according to its site. The property, which Embarcadero Capital Partners plans to redevelop in the near future, sits on a 5.2-acre site and is actively leasing.
The steel-framed office and R&D building is situated in the “Golden Triangle” submarket of Silicon Valley just one block from North First Street. It is adjacent to U.S. Highway 101, San Jose International Airport and the Karina Court VTA light rail station. According to the company’s site, the property can accommodate a wide variety of tenants ranging from typical office users to heavy lab and R&D businesses.
Embarcadero Capital Partners has two other San Jose properties in its portfolio, including a 379,000 square foot urban high-rise office located at 499 Almaden Blvd., and the 416,000 square foot Almaden Financial Plaza, another office campus. The firm has 21 properties in its Bay Area portfolio, with locations throughout the Bay Area, including San Francisco, Sunnyvale, Pleasanton and Milpitas. The firm has sold roughly 30 properties since 2007, as well.
According to Cushman and Wakefield’s 2018 Fourth Quarter Silicon Valley Marketbeat, 2018 was one of the strongest on record for the Silicon Valley office market, spurred by job growth in San Jose that has outpaced the rest of the Bay Area with an annual increase of 3.2 percent year-over-year. The capital markets in Silicon Valley are also strong, the report states, as major expansion by technology tenants continues and investors remain bullish for tech-driven real estate.
Embarcadero Capital Partners did not immediately return The Registry’s request for comment.