By Meghan Hall
After announcing it would be relocating its headquarters to Austin, Texas, enterprise software company Oracle has sold off one of its San Jose assets. In a deal that closed today, 488 Almaden Boulevard sold for $155 million, or just under $409 per square foot, according to the Silicon Valley Business Journal. The buyer was Lane Partners.
Oracle originally put the property up for sale in January of this year. The 17-story, Class A office tower includes about 379,000 square feet of space. The building was constructed in 2002 by The Sobrato Organization, which subsequently sold the building to BEA Systems for $135 million after the asset sat vacant for nine years. Oracle has owned the building since 2008.
The building is located on the same block as the San Jose McEnery Convention Center, blocks from downtown San Jose, the Children’s Discovery Museum of San Jose and the Guadalupe River Trail.
Currently, the building’s only tenant is PricewaterhouseCoopers, or PwC. PwC leases three floors within the building totaling 79,506 square feet of space. Over the past year, the firm has given up space within the building, and with five years remaining on its lease term, it is paying rents about 35 percent below market levels, according to some estimates.
“488 Almaden Boulevard is a Class-A office building located in Downtown San Jose. A two-story colonnade provides a gracious entrance that features a dramatic glass sculpture by Dale Chihuly suspended from the lobby ceiling,” states Embarcadero Capital Partners’ website, which lists 488 Almaden Blvd. as one of its ERS fee managed investments. “The colonnade motif is repeated at the top of the building and its dramatic lighting makes a signature statement on the evening skyline.”
Lane Partners’ plans for the building are not clear at this time, however, the firm specializes in institutional-quality real estate across Northern California, and it will likely look to improve some of the offerings in the asset and work on leasing it. Since 2006, the firm has turned over more than six million square feet in Silicon Valley. The firm is currently working on several projects, including Southline, a 26-acre, 2 million-square-foot development in South San Francisco, and 520 Almanor, a 230,000 square foot office building in Sunnyvale.