By Jon Peterson
San Francisco-based Jay Paul Company has been selected as the buyer of 50 West San Fernando Street (formerly the Knight Ridder building) office property in San Jose for in excess of $235 million, or over $683 per square foot, according to sources that track the sale of major office assets in the San Jose market. The deal has not closed yet, and this sale would be the third time this asset will trade since the Great Recession.
The seller of the property is a venture between San Francisco-based DivcoWest Properties and Boston-based The Rockpoint Group. The listing agent on the sale is the San Jose office of Eastdil Secured. DivcoWest declined to comment when contacted for this story.
The seller has had ownership of the property since December of 2015, when the real estate investment firms paid $165.5 million for the building at the time. They had bought the asset from Los Angeles-based CBRE Global Investors, which had acquired the building for $95.6 million in 2012.
50 West San Fernando is a 344,000 square foot office building. There is currently a diverse group of tenants in the property, which includes Accenture, Merrill Lynch Wealth Management, a bureau for public broadcasting station KQED and the Silicon Valley Capital Club.
DivcoWest has done some work to the property while it has been under its control. One part of this was the opening up of the 14,000 square foot top floor of the property and converting it into office space. This floor of the building was not considered leasing space in the past, since it had been held by the previous owners as storage space. This part of the building allows for top level views of downtown San Jose.