Gramercy Property Trust Buys San Jose Property for $44MM

In its fourth quarter and full year 2014 financial results, Gramercy Property Trust disclosed that it had recently purchased the 207,006 square foot, class-B industrial property located on 2701 Orchard Parkway in San Jose.

[contextly_sidebar id=”9ec1HStFO4ck4OjZbcC2FtyvZVm3aff4″]The price per square foot on the fully-occupied property comes to roughly $213. The property was sold by LBA Realty, who had owned it since 2011, when it paid $14 million or roughly $67 per square foot, according to a report by the San Jose Business Journal. Sunnyvale-based Vander-Bend Manufacturing is the tenant in the building, which it had occupied since April of last year.

The Orchard Parkway sub-market has been at the center of many recently renovations, where roughly one million square feet of old, and in some cases obsolete, real estate had gone through a major renovation.

Industry insiders had been watching the developments of this area for a while as a bell weather of the overall health of the north San Jose market. Recently, a few deals had closed showing that the area was ripe for activity. Irvine, CA – based Bixby Land Company had signed Verizon Corporate Services for 136,000 square feet of the four-building, 250,000-square-foot renovation project the firm called THE Campus, just up the street at the corner of West Trimble Road and Orchard Parkway. Bixby Land and Hartford, Conn.-based Cornerstone Real Estate Advisors bought the four-building complex from Rockpoint Group in 2012 for nearly $30 million, or $120 per square foot.

“THE Campus offers progressive companies a dynamic office setting with appealing architectural elements and abundant on-site amenities,” said Bill Halford, president and CEO of Bixby Land Company at the time of the lease announcement last summer.

In another deal announced last year, American Realty Capital purchased 3001 Orchard Parkway for which it paid $36 million, roughly $368 per square foot. This 98,000 square foot location is leased to ProteinSimple, which occupied the building in May of last year. The building was sold to American Realty by Ridge Capital Investors and Contrarian Capital Management, who had acquired the structure in 2013 for $13.5 million, or $137 per square foot.

West Coast Commercial Real Estate News