(EDITOR’S NOTE: According to public documents, the asset traded for $108.5 million, or about $496 per square foot. Grosvenor paid all cash for then property, located at 2610 Orchard Parkway in San Jose, which was sold by Hong Kong-based Gaw Capital. The seller had acquired the asset in June of 2018, when it paid $93.5 million for the building. This marks the third time the property has been sold in roughly 9 years. San Francisco-based Divco West purchased the property through its MWest Portfolio in 2012 for $39,209,000 and in 2014 began an extensive renovation with the help of San Jose’s Studio G Architecture. In 2016, it brought in Toshiba, which maintains its lease in the property to date.)
218,645-square-foot property at Orchard Parkway and West Trimble Road 100% leased to Toshiba America Electronic Components.
Grosvenor Americas (‘Grosvenor’), a privately owned international investor and developer, announces today the acquisition of the Orchard-Trimble office and R&D campus in North San Jose. The property is fully leased to Toshiba America Electronic Components, Inc., the US storage and semiconductor division of Toshiba Corporation.
Located in the Golden Triangle in North San Jose, Orchard-Trimble borders Highway 101 and 880, two major commuting arteries in the San Francisco Bay Area. The campus is proximate to San Jose International Airport and provides access to downtown San Jose via the VTA Light-Rail.
“We have strong confidence in the long-term growth trajectory of the North San Jose submarket,” said Angela Biggs, Grosvenor Americas’ Vice President, Investment. “The submarket benefits from expanding employers migrating from western Silicon Valley and tailwinds for the hardware sector, particularly the semiconductor space.”
Orchard-Trimble is a modern technology campus with R&D lab space, which was comprehensively renovated as the showpiece of the MWest portfolio. The property boasts noteworthy architectural features from a high-visibility location. The distinctive glass window system and brick veneer differentiate the property on Trimble Road, which is accessed by 25,000 cars per day.
“Orchard-Trimble bolsters our portfolio as a well-located asset in the path of growth, which fits our strategy of identifying opportunities to hold for the long-term,” added Biggs. “Additionally, Toshiba’s targeted sustainability initiatives align with Grosvenor’s commitment to minimize the carbon footprint of its properties.”
A primary pillar under Grosvenor’s Environment, Social & Governance (ESG) program is its World Green Building Council’s Net Zero Carbon Buildings Commitment. As part of its goal to achieve net zero operating emissions by 2030, Grosvenor will enhance sustainability measures by implementing the use of renewable energy and an energy optimization program at the Orchard-Trimble campus.
Grosvenor has operated a diversified real estate investment and development business in North America since 1952. The Company actively manages its $2.8B investment portfolio and is executing on a proprietary development pipeline that will deliver 4,200 homes across its active markets. Consistent with the firm’s farsighted approach to investment and development, Grosvenor Americas values long term partnerships: across their nine active investment partners, the average relationship is 20 years.