By Meghan Hall
Palo Alto, Calif.-based Peninsula Land and Capital has been on a Silicon Valley buying spree–one that has continued with the recent acquisition of two San Jose office buildings. In a deal that recently closed, Peninsula Land purchased 5970 and 5981 Optical Court for a combined $63.5 million. The seller, according to public records, was DRA Advisors.
The Mercury News was the first to report on the deal.
DRA Advisors has owned the buildings since 2017. It purchased 5970 Optical Court, which totals 129,200 square feet, for $17.065 million. 5981 Optical Court totals 182,400 square feet and was originally acquired by DRA for $19.643 million.
The latest deal is an extension of a number of transactions that closed between Peninsula Land and Capital and DRA Advisors during the second quarter. Peninsula purchased a number of high-tech and research and development buildings for $165 million. The buildings are located in San Jose, Fremont and Milpitas, and the entire portfolio totals 585,478 square feet of space. The portfolio was 94 percent leased at the time of sale to seven tenants, with the remaining weighted average lease term being about 7.6 years.
In August, DRA Advisors also put two other Optical Court assets up for sale. Located at 5945 and 5941 Optical Court, the two buildings total 135,000 square feet. Guidance pricing on the properties, according to previous reporting by The Registry, was about $50 million, or $370 per square foot. DRA has also owned the buildings since 2017, when it bought 5945 Optical for $14.2 million and 5941 Optical for $13.45 million, according to public records.
The Optical Court buildings are located just off Highway 101 in South San Jose. The surrounding neighborhood is largely commercial, with companies such as Roche Sequencing, Stryker Endoscopy, Velodyne Lidar and Equinix located nearby. The properties are close to Carrington College, Costco and Kaiser Permanente Medical Center.
In a third transaction that just closed around the same time as its San Jose acquisitions, Peninsula Land & Capital disposed of a Mountain View office building for $31.3 million. The property is located at 800 California St. in downtown Mountain View and was acquired by another major local developer, Sand Hill Property Company.
In all, the asset totals 28,000 square feet and was originally constructed in 1999. According to Peninsula Land and Capital’s website, the property currently has one vacancy, about 5,052 square feet, available for rent. The property is not far from the Mountain View Performing Arts Center, Sushi Tomi and Casual, among other restaurants and eateries.