By Meghan Hall
An aging office property with redevelopment permits lined up and ready to go has traded hands—an indication that investor appetite for Silicon Valley opportunities is still present. After a years-long entitlement process, FortBay has sold off 4300 Stevens Creek Boulevard for $54.5 million. The property, acquired by Miramar Capital, is slated to become a sizable mixed-use project in the neighborhood, depending on when Miramar Capital intends to break ground.
The Mercury News was the first to report the transaction.
According to public property records, FortBay originally purchased the site in 2015 for $53 million, or about $353 per square foot. The property, known as the Stevens Creek Executive Park, is currently developed with 167,000 square feet of multi-tenant office and retail. The building was originally constructed in 1975 and was lasted renovated in 1977.
The Stevens Creek Promenade project span all ten acres between 4300 and 4400 Stevens Creek Boulevard. The goals of the project, states FortBay’s website, is to address higher density job growth capacity, housing,
“Stevens Creek Promenade is a pioneering catalyst project on Stevens Creek Boulevard, providing jobs, housing (both market rate and affordable), shopping, and engaging public open spaces,” states FortBay. “This project is one of the initial steps in development of the Stevens Creek Urban Village that implements the City of San Jose’s vision for multimodal transportation infrastructure in the corridor such as VTA’s Rapid 523 bus project on Stevens Creek, dedicated bike lanes, enhanced pedestrian connectivity, and improving the efficiency of the boulevard to facilitate movement of people and vehicles.”
The project will be the first proposed to provide jobs and housing for a variety of income levels as part of San Jose’s strategy for growth. Project documents show that the development will include a 233,000 square foot office building, a six-story parking garage, an eight-story mixed-use building with 10,000 square feet of ground floor retail and 289 residential units, and a second eight-story 293-unit residential building. 88 of the residential units will be designated as affordable. The development of a 1.4-acre landscaped promenade is also included in plans, as well.
The project was approved in 2019, but it is unclear when Miramar Capital will break ground. The firm, which has offices in both Los Angeles and San Jose, targets markets in the Western United States. Projected level returns on its developments range in the 14 to 20 percent range, states Miramar Capital on its website, and the company generally pursues deals with between $10 and $40 million in equity. Most recently, Miramar Capital acquired The Atrium at Lakeside in Santa Clara; the firm also owns the Bridgepoint Office Park in San Mateo and 2825 North First in San Jose.