By Meghan Hall
Commercial real estate assets that are fully leased and recently revamped are continuing to attract interested investors, thanks to their strong fundamentals. In a deal that recorded on Monday, June 14th, a multi-tenant office building at 2910 Stevens Creek Boulevard traded for $17.6 million or about $1,304 per square foot. According to The Mercury News, the first to report the deal, the property was sold by University Avenue Partners to a joint venture of Brandenburg Properties and venture capital firm SDS NexGen Partners.
The property totals 13,500 square feet and is occupied by Verizon Wireless, Bank of the West and Theta.tv, an e-gaming and streaming website. The property is currently fully leased.
“At no other time in our real estate careers has there been a more competitive, tricky mark,” said William Baron of Brandenburg Properties and Michael Mulcahy of SDS NexGen Partners in a joint statement. It is difficult to find opportunities that truly intrigue us. 2910 Stevens Creek captured our attention because of its proximity to the center of gravity not only for San Jose–for the Bay Area–in terms of quality retail, high-end density residential and world class office buildings.”
While the buyers represented themselves in the deal, University Avenue Partners was represented by Marcus & Millichap’s J.J. Taughinbaugh and Yuri Sergunin.
University Avenue Partners purchased the asset in 2013 for $4.5 million, according to public documents. Several years later, the firm undertook “extensive” renovations to the building in 2017, upgrading the building to encompass a modern design and exterior facade, as well as underground parking.
The property is extremely well-located, and is within easy walking distance of both Santana Row and San Jose’s Westfield Mall. Combined, the two retail centers are major magnets for retail and commerce activity in the neighborhood, with a number of major retailers and services such as Veggie Grill, Maggiano’s, Macy’s and Nordstrom. The offices are also easily accessible via Interstates 880 and 280.
The property’s seller, University Avenue Partners, has been active in the Bay Area since its founding in 2010. According to the firm’s website, University Avenue Partners has invested more than $100 million in equity across the Bay Area. The firm has closed 42 deals since its founding and typically targets investments between $1 million and $30 million. The company is entirely debt-free and pays for its properties in cash.
As of this writing, University Avenue Partners has yet to return The Registry’s request for comment.