Preylock Buys Six-Building San Jose Property for $83.8MM

By Vladimir Bosanac

The Golden Triangle in San Jose has always been the epicenter of economic activity for the city, and commercial real estate in the region bounded by US Highway 880 to the east, State Route 237 to the north and US Highway 101 to the south has been on target lists of many investors. Now, Los Angeles-based Preylock Real Estate Holdings made another investment in the region, its third, worth $83.8 million, or around $272 per square foot, into a six-building Central Park Plaza campus located on the corner of Zanker Road and E. Plumeria Drive, according to public documents cited by the San Jose Mercury News.

The buildings are located at 2890 Zanker Rd., 2860 Zanker Rd., 2880 Zanker Rd., 2870 Zanker Rd., 2841 Junction Ave. and 2833 Junction Ave. and comprise around 308,000 square feet of space, according to filings with the county. The buildings vary in size from just under 45,000 square feet to nearly 59,000 square feet. The seller of the property was an entity associated with Dallas-based Transwestern Investment Group, which had purchased the assets in March of 2016 for $68,750,000, or roughly $223 per square foot, according to public documents.

Some of the tenants in the property include Lulutrip, Cellfire, Manpower, TCL Research America and SMC Corporation of America, according to Google, which may not have the most updated information but shows a variety of tenants that include services, technology and R&D tenants.

Preylock Real Estate Holdings is an owner, operator and developer of commercial and residential real estate primarily located on the West Coast. In the Bay Area, the investment firm had been active in the last year or so, spending $240 million on a seven-building Santa Clara portfolio in December of 2017. The purchase was made in partnership with Hollywood director and producer Ivan Reitman, and the seller was San Francisco-based DivcoWest.

In May of 2017, the company also invested $82 million to buy the 2851 Junction Avenue property in San Jose. Equity Office, now owned by Blackstone, sold the property to Preylock. Equity had owned the property since November of 2016 when it acquired it in a portfolio sale from Hines for $76 million.

The company stated in a release earlier this year that it is currently focused on the acquisition of value-add and core plus office buildings located in major West Coast sub-markets. To date, Preylock has acquired three assets totaling ~1 million square feet, investing approximately $400 million.