By Jon Peterson
Palo Alto-based Peninsula Land & Capital has closed on the $36 million acquisition of the 116,042 square foot office building in San Jose located at 178 East Tasman Drive, according to public records. The sale comes to just over $310 per square foot.
The seller of the property was Irvine-based LBA Realty. This company did not respond to a phone call when contacted for this story.
Peninsula Land will have some new leasing opportunities with this property. According to its website, there is 43,300 square feet in the property, or roughly 37 percent of the space, that is now available for new tenants.
The property was part of a two-building acquisition that seller LBA Realty made in October of 2012. At that time, LBA had bought the two identical buildings, located at 178 and 160 East Tasman, for $91.5 million. In September of 2018, LBA sold the 160 East Tasman building to the Hangzhou Silicon Valley Innovation Center, which is now based in this building, for $41.5 million, but it retained ownership of the building at 178 East Tasman. The east Chinese city of Hangzhou, part of the Zhejiang province, announced earlier in 2018 its intent to open up this center to foster deeper collaboration within Silicon Valley.
LBA has now disposed of both assets for around $14 million less than what it paid for them.
Peninsula Land & Capital is a private equity commercial real estate investment firm with a focus on acquisitions and dispositions of office/R&D buildings in Silicon Valley and the greater Bay Area, according to its web site. It owns a number of office and industrial assets across the region. In November 2018, it paid $71.5 million to acquire the 1850 Gateway asset in San Mateo. This property is a 142,911 square foot office building spread across seven stories.