By Meghan Hall
North San Jose has been a hub of investment activity in recent weeks, and another sale has been added to the mix. In a deal that closed last week, Bay Area developer Dollinger Properties paid $56 million, or about $335 per square foot, to acquire the Valley Creative Center. Dollinger purchased the property from Vista Investment Group, according to brokerage firm Cushman and Wakefield.
The six-building property is located on Charcot Avenue and Bering Drive. In all, the campus totals just under 167,000 square feet. The property’s tenants include BioNex Solutions Inc., Cathx Medical and O-Net Communications Inc.
“This is a well-leased asset and a quality investment of an attractive low-rise campus positioned in the region’s highly desired Golden Triangle area,” said Scott Ahearn, Director of Marketing and Acquisitions, Dollinger Properties. “The location also offers great accessibility and visibility for tenants as well as plentiful walkable and nearby amenities.”
The complex is in a highly commercial part of North San Jose, with numerous other companies around. KNTV, NBC Bay Area Telemundo 48, Prudent Solutions, Mos Plastic and others are within the vicinity. The property is also near Interstate 880 and Highway 101.
Dollinger Properties, based in Redwood City, Calif., focuses on multi-tenant R&D, industrial, flex, multifamily and retail properties. According to the company’s website, the firm owns and manages 70 properties in California. Its other Bay Area properties include 2950 Patrick Henry in Santa Clara,1755-1759 McCarthy Boulevard in Milpitas, and 2329-2333 Zanker Rd. in San Jose.
Silicon Valley’s R&D market is beginning to show more signs of promise after nearly a year of slow activity. At the end of the second quarter, the area’s vacancy rate evened out, finishing at 13.1 percent, up from 13 percent the previous quarter, according to a Q2 report by Cushman & Wakefield.
On the investment side, a number of major R&D sales have closed in recent months. Westbrook Partners and Four Corners Properties sold the Rio Tech Park in North San Jose to Washington Holdings for $169.3 million, or $454 per square foot, while Peninsula Land & Capital purchased a portfolio of buildings at various locations for $142 million, or $242 per square foot. With such investment into the market, Silicon Valley R&D’s upswing is expected to continue.