KBS Capital Markets Group Sells Final Piece of District 237 Campus in San Jose for $35MM

KBS Capital Markets, Menlo Equities, EXAN Group, Holger Technology Partners, San Jose
Courtesy of CBRE.

By Meghan Hall

Over the past several years, KBS Capital Markets Group has slowly been selling off buildings within San Jose’s District 237 Campus. This month, the firm closed on the sale of the final building within the campus, making its disposition of the asset complete. Located at 300 Holger Way, the asset traded for $35 million to Holger Technology Partners, an affiliate of Menlo Equities. 

In all, the building totals 99,600 square feet and is currently vacant. However, the building was renovated over the past couple of years with nearly $3 million in improvements. Renovations included demolition to the interior to create open office spaces, the locker rooms and showers, and lobby upgrades.

KBS originally acquired the building, along with seven others within the campus, for $206.5 million back in 2013. In all, the campus totals 32.67 acres; all buildings on the site were constructed between 1999 and 2001. Combined, they total 610,324 rentable square feet. 

Joe Moriarty, Scott Prosser and Jack Depuy with CBRE Capital Markets represented the KBS Realty Advisors in the deal.

“300 Holger Way’s recent renovations and location near growing employers helped to attract investor interest. There is a significant opportunity to add value by capturing some of the tenant demand in the Silicon Valley market,” said Moriarty.

According to KBS’ website, the other buildings are 100 percent leased to five tenants. Long-term tenants include Raytheon, a global technology and innovation contract, CDK Global, an automotive software company, and NXP Semiconductors. 

KBS began selling the buildings off in the summer of 2018. At the time, KBS traded three buildings–400, 450 and 475–for $97,445,545. Two years later, in June of 2020, buildings 100 and 200 were sold for a combined $95.2 million. The assets, which total 142,710 square feet, were purchased by EXAN Group, an independent real estate fund and asset management company.

In September of 2020, Building 250 was acquired by Bailard for $38.25 million, while in December of last year, Building 350 was sold for $50.5 million to Thor Equities. In all, KBS disposed of the asset for a combined $316.4 million, according to its website.

KBS is one of the largest investors in commercial real estate in the nation, and as of the spring of this year the firm and its affiliated entities had completed more than $43 billion in transactions. The company was originally founded in 1992 and specifically focuses on some of the largest and active markets in the country.

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