SAN FRANCISCO, CA – April 23, 2014 – HFF announced today that it has closed the $40 million sale of Community Towers, a two-building, 309,235-square-foot, transit-oriented office complex in downtown San Jose, California.
HFF marketed the property on behalf of the seller. The property sold for $40 million free and clear of existing debt.
Community Towers, located at 111 West St. John Street & 111 North Market Street, is adjacent to the popular San Pedro Square and within close proximity to San Jose’s SAP Center. The property provides immediate access to major transportation corridors including Interstates 280, 680 & 880, as well as US 101, and is a five-minute drive to San Jose’s Norman Y. Mineta International Airport. Originally built in 1963 and 1965, the property was renovated in 2007-2008 and is 94 percent leased to tenants including Kerio Technologies, Anatomage, Rockwell Automation and Sunwize.
The HFF investment sales team representing the seller was led by managing director Steven Golubchik along with managing director Nicholas Bicardo and director John Simerlein.
“Community Towers provided investors a rare, value-add opportunity encompassing a discount to replacement cost with strong in-place cash flow, coupled with a market that is beginning to experience significant growth and tenant in-migration,” said Golubchik.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.