Menlo Park-based Lane Partners, a commercial real estate investor, developer and operator across the Bay Area, sold its Orchard Commons property in San Jose for $105 million, or $333 per square foot. The 6-building, 315,000 square foot campus was purchased by the State Board of Administration of Florida, who confirmed the sale. The manager on the transaction was MetLife, who was also the direct buyer, according to sources familiar with the details of the deal. The transaction was first reported by the Silicon Valley Business Journal.
Lane Partners had owned the property since June of 2012, when it paid $31,071,000 for the development, or roughly $98 per square foot. The firm reportedly spent $16.5 million in upgrading the buildings, and completed the renovations by December of 2013, according to the Studio G Architects, who worked on the extensive renovation. Today the property features modern upgrades, common areas that have fire pits and lounge chairs. According to Loopnet, only two spaces are available for lease totaling just over 52,000 square feet. Asking rents in the building range from $1.85 to $2.50. The San Jose office of CBRE is leading the leasing efforts on the property led by Rob Shannon, Bob Steinbock and Christian Marent.
According to CompStack, General Dynamics leases just over 80,000 square feet at the property, and its lease expires in 2023.
The property is located at 2688, 2702, 2708 and 2728 Orchard Parkway in San Jose.
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.