Rockwood Capital, Four Corners Properties Sell 209,400 SQFT Building Cluster in San Jose for $94.7MM

By Kate Snyder

Even as the technology sector grapples with an uncertain future amid layoffs and dropping office space, a recent transaction in San Jose for three-quarters of a tech campus at nearly $100 million shows that sales activity is as steady as ever.

An entity affiliated with a Bay Area group headed by Matt Morey, Nancy Wallace and Adam Morey, who are executives with Mountain View-based Peninsula Building Materials, purchased three buildings within the tech campus Montague Crossing for approximately $94.7 million, or about $452 per square foot, according to a report from The Mercury News. The seller was listed as an alliance of Rockwood Capital and Four Corners Properties, which according to the report bought the Montague Crossing campus in 2015.

Scott Prosser, Joe Moriarty and Jack DePuy of CBRE’s Capital Markets team in Silicon Valley represented the buyer.

“Navigating today’s market headwinds can be challenging but assets like Montague Crossing that are centrally located, renovated and fully leased are well-positioned for long-term growth. We’re pleased to represent the buyer and deliver an attractive core asset for our clients,” said Prosser, executive vice president of CBRE.

Montague Crossing is a four-building tech campus at the corner of East Trimble Road and Junction Avenue. The buildings are located at 541 E. Trimble Road, 2520 Junction Ave. and 2560 Junction Ave., The Mercury News report states. All three total approximately 209,400 square feet and are leased to companies such as Comet Technologies, Infineon Technologies and Gener8.

Much of the recent sales activity in San Jose has been for multifamily properties, but there has been a fair amount of commercial transactions and leasing/subleasing activity as well.

In September, The Sobrato Organization sold 625 Lincoln Avenue to the property’s tenant, El Camino Health, for $19 million, or about $538 per square foot, according to The Registry’s previous reporting. El Camino Health uses the 35,272 square foot medical office building for urgent and primary care and is one of 13 locations across Santa Clara County. In the same month, the former Sears building near the Eastridge Center mall was acquired by an affiliate of Intelli, a real estate investment group associated with Do Van Tron, for $24.8 million, or about $95 per square foot. The seller of the 260,100 square foot retail site was listed as Seritage Growth Properties.

Earlier this year, ByteDance, the Chinese internet technology conglomerate and parent company of the social media platform TikTok, was planning to sublease 658,000 square feet, or two buildings in San Jose’s Coleman Highline development. The company would be filling the space formerly occupied by Verizon at 1193 and 1199 Coleman Ave.

West Coast Commercial Real Estate News