Nautilus Global Investments Buys San Jose Office Asset for $32MM

Lowe Enterprises Investors, Vista Investment Group, San Jose, The Kase Group, Thinfilm Electronics, Silicon Valley, Bay Area, BART, VTA Light Rail, CBRE

(EDITOR’S NOTE: According to sources with direct knowledge of the details of the transaction, the sale closed at $32 million, or $344 per square foot.)

SAN JOSE, CA (November 15, 2018) – Lowe Enterprises Investors (LEI) and Vista Investment Group have completed the sale of a two-building office/R&D/manufacturing property totaling 92,864 square feet in San Jose, California to Nautilus Global Investments.

Jeff Bracco of the Kase Group exclusively represented Nautilus Global Investments, and through a strategic partnership with Jesse Hunt of SAR Enterprises and Scott Monasch of Barry Slatt Mortgage, the Bay Area based firms have helped NGI acquire a portfolio of over $100MM in under two years.

Lowe and Vista acquired the property in 2016. Concurrent with the closing on November 15, 2018, Thinfilm Electronics, Inc. executed a long-term lease for the entire building, which includes a 22,000-square-foot, state-of-the-art clean room that the company utilizes in its production of printed electronics and wafer technology. The property serves as the U.S. headquarters for Thinfilm Electronics, a wholly-owned subsidiary of Norwegian Thinfilm Electronics ASA (THIN:NO), and the firm’s NFC Innovation Center. Ten years remain on the Thinfilm lease.

The property, designed as connected one- and two-story buildings, is set on 5.4 acres, near the interstates 880 and 101 in North San Jose. This area within the Silicon Valley offers high-quality space for tech companies and easy access to major transportation corridors connecting to other major business centers in the area. LEI made significant improvements to the building’s interior, landscape and outdoor areas. LEI affiliate, Lowe oversaw the implementation of the upgrades through its Bay Area regional office. Improvements included a new fitness center and break room/gathering space, upgrades to offices and restrooms and the installation of state-of-the-art energy efficient lighting. Exterior upgrades include the addition of vehicle charging stations, upgraded landscaping with outdoor seating/gathering space, a new roof, parking lot improvements and exterior paint.

2581 Junction Avenue is less than half a mile to the VTA Light Rail Bonaventura Station. The station will offer direct access to the Milpitas BART Station, which is scheduled to open next year, representing the first VTA Light Rail connection to BART.

Scott Prosser, Joe Moriarty and Jack DePuy of CBRE Capital Markets’ team in the Bay Area represented the seller.

North San Jose continues to attract tenants from a wide variety of industries, with a majority of the demand coming from the technology sector. The submarket has experienced significant occupancy gains since 2013, leading to increases in average asking lease rates. North San Jose has witnessed a transformation the past several years with the construction of new residential, retail and mixed-use projects, creating a true live, work, play environment.

About NGI
NAUTILUS GLOBAL Headquartered in the Silicon Valley of California, Nautilus Global is an international investment fund that owns a diversified portfolio of net leased real estate investment assets. These investment assets include various office, retail, and industrial properties throughout the United States. The Nautilus management team is made up of highly skilled professionals with a diverse background and experience in financial management, real estate, and investment advisory, and holds several professional designations and qualifications.

About Lowe Enterprises Investors
Lowe Enterprises Investors (LEI) provides real estate investment management services on behalf of a select list of institutional and high net worth clients and partners through individually managed accounts, commingled fund relationships and targeted investment programs. The firm has been responsible for $7 billion in real estate assets, including commercial, hospitality and debt investments, since inception in the late 1980s. LEI has been a leading value-added investor through multiple cycles, employing equity and structured debt in its investment strategies. The firm is based in Los Angeles and is an affiliate of Lowe, a national investment, development and management firm.

About Lowe
Los Angeles-based Lowe, formerly known as Lowe Enterprises, is a leading national real estate investment, development and management firm. Over the past 46 years, it has developed, acquired or managed more than $28 billion of real estate assets nationwide as it pursued its mission to build value in real estate by creating innovative, lasting environments and meaningful experiences that connect people and place. Lowe is currently responsible for more than $8.5 billion of commercial, hospitality and residential assets and has more than $2 billion in commercial real estate projects in the pipeline or under development. In addition to its Los Angeles headquarters, Lowe maintains regional offices in Northern California, Southern California, Denver, Seattle and Washington, DC. For more information visit www.Lowe-RE.com

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated 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. Please visit our website at www.cbre.com.

West Coast Commercial Real Estate News