Just a few months after New York City-based Brookfield Property Group acquired the 118,000 square foot property on 2300 Orchard Parkway in San Jose, the group flipped the asset to a Chinese entity, Han’s Holdings, affiliated with Han’s Laser Technology Industry Group for $48.5 million, according to the San Jose Mercury News. On a per square foot basis, the transaction comes to $411. Brookfield purchased the building from Boston-based TA Realty Associates in the first quarter of 2017 for $47.5 million, which owned the property in its Realty Associates Fund IX. The sale was part of a larger, 45-property, 8.6 million square feet portfolio transaction for which Brookfield paid $854.5 million. The San Jose asset was the only Silicon Valley property in the portfolio, according to a release from the company.
The property is leased to Cavium, a technology company that manufactures programmable switch devices. Cavium also occupies two buildings next door, with an address located on 2315 N. First Street. The property was recently remodeled by San Jose based AAI, which is owned by Nelson, a national architecture and design firm, which acquired the San Jose design firm in the fourth quarter of 2016. AAI worked on the repositioning of the 2-story, 1997 vintage property by redesigning both the interior and exterior of the property. HMH Landscape Architecture team partnered with architectural firm AAI in updating the exterior and interior spaces. Cavium leased the property just two weeks after the redevelopment was completed, according to AAI.
The neighbors to the north, however are those that will likely make this neighborhood even more valuable over the years and decades to come. It is the site that Apple owns, where the city of San Jose had approved a 4 million square foot campus development in January of 2016. The global computer juggernaut had not announced plans on when it may commence construction on the site, but its 86-acre site, when developed, has the opportunity to increase value of all the surrounding buildings and the vicinity, in general.
Just to the west of the building that Han’s purchased is a development at 350 and 370 West Trimble, which was purchased by LBA realty in March of 2017 for $130 million.
The Orchard Parkway neighborhood of northern San Jose has been active during the region’s recovery from the Great Recession. A number of buildings were updated, renovated and repositioned with some notable transactions occurring in the last few years. One of them was Bixby Land Company’s contemporary office development at THE Campus, on the corner of Trimble and Orchard Parkway, which signed Verizon Corporate Services to a 136,000 square feet lease in two of the four buildings at the property.
A recent sale transaction in the neighborhood was the 155,613 square foot office building located at 2851 Junction Avenue, just two miles away, which New York City-based Blackstone Real Estate Partners purchased for $76 million, or $490 per square foot, in November of 2016 as part of a larger portfolio it acquired from Hines Real Estate Investment Trust. The property is fully occupied by TSMC North America (Taiwan Semiconductor Manufacturing Company) for another 12 years. In May of this year Blackstsone sold the property $82 million, or roughly $527 per square foot, according to public documents.