SAN JOSE, Calif. – Nov. 9, 2021 – CBRE announced the sale of the 160,000-sq.-ft. advanced manufacturing and office campus located at 5300-5350 Hellyer Avenue in South San Jose to J&J Properties. Empire Square Group sold the property for $64.3 million (just under $402 per square foot). Joe Moriarty, Scott Prosser and Jack DePuy with CBRE Capital Markets in San Jose brokered the sale.
Brad Zampa and Michael Walker with CBRE Capital Markets’ Debt & Structured Finance group arranged $44 million in acquisition financing on behalf of J&J Properties. The 10-year fixed-rate, non-recourse loan was arranged through a multinational investment bank.
CAES (formerly Cobham) has occupied both buildings on the Class A campus since it was originally built in 1999 and has invested significant capital into facility improvements over the years. The property is also supported by specialized infrastructure including 21 kV of power and more than 1,000 tons of HVAC. CAES is the largest provider of analog and radiation hardened technology for the U.S. aerospace and defense industry. The company makes off-the-shelf and customized radio frequency, microwave and high reliability microelectronic products and subsystems.
“5300-5350 Hellyer Avenue has a long-term, high-quality tenant in place that has demonstrated its commitment to the property. The site is also well positioned for attracting and retaining labor. It is surrounded by retail and residential development and offers a coveted reverse commute compared to submarkets in the north,” said Mr. Zampa, executive vice president, CBRE.
The property is approximately two miles north of the intersection of Highway 101 and Highway 85. More than 3,000 residential units and over 400,000 sq. ft. of new retail construction has been recently completed in the immediate area.
“South San Jose has undergone a fundamental shift over the past several years. Nearly 2.5 million sq. ft. of tenants and owners/occupiers have moved to South San Jose since 2017,” said Mr. Prosser, executive vice president, CBRE. “Many of these migrating companies are relocating from northern Silicon Valley in pursuit of more options for high-quality space at economical rates.”
Asking rates for office space in North San Jose averaged $3.99 per sq. ft. at the end of the third quarter of 2021, nearly double the average asking rate in South San Jose ($2.03), according to CBRE research.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.