By Jon Peterson
New York City-based New York Life and San Francisco-based Graymark Capital have placed the 238,242 square foot Ridder Park Technology Park in San Jose up for sale. There has been no pricing guidance established at this time for the sale for the office and R&D property, as stated by sources that track the sale of similar properties in the San Jose market.
The two owners of the property did not respond to phone calls seeking comment for this story.
The listing agent on the sale is Colliers International Institutional Capital Markets with offices in San Jose and San Francisco; both are involved in the sale. Two of the people involved are Bob Gilley and Andy Zighelboim, both executive vice presidents. Colliers declined to comment when contacted for this story.
The current ownership group has owned the property since October of 2015. These investors had paid $51.5 million for the property, as stated in public records. The property that it acquired was pretty well leased at the time of this acquisition.
The property now has no tenants that are occupying space in the buildings. This asset would seem to be a classic re-tenanting or re-positioning play for the new owners, according to sources that are familiar with the property. There is more demand than there is supply within the Ridder Park competitive market set. There are at least 21 tenants that are in the market for space with no less than 100,000 square feet and have cited San Jose as a viable option. In the region, there is now only 9 availabilities in this square foot requirement for tenants.
The projected rents in the property would be somewhere around $2.00 per square foot on a triple-net basis. This compares to other deals in the market for newer product that have been priced at $2.50 per square foot triple-net. The main targeted audience for this space would be technology tenants.
The type of buyer that would likely be interested in the property would be institutional capital seeking a value-add investment play. The three-buildings in Ridder Park are located at 1001 Ridder Park Drive, 1751 and 1717 Fox Drive. The campus type setting includes around 6,500 square feet of outdoor amenities including a bocce ball court, outdoor furniture and a privacy screen.