San Jose Class B Office Property up for Sale with $25MM Asking Price

San Jose, California Partners, Willow Glen 1530 Meridian Avenue
Rendering courtesy of Robert Becker

By Jon Peterson

A private real estate owner has chosen to list for sale the 42,122 square foot office building in San Jose located at 1530 Meridian Avenue. The asking price for the property is $25 million, or just around $593 per square foot, according to the property’s offering document.

The seller is working on the sale with the brokerage firm California Partners Inc. The brokers involved in the sales process include Kirk McKinney and Walt Gil. California Partners did not respond to phone calls seeking comment for this story.

The current ownership of the property has spent $4.3 million to make some recent capital improvements to the property. The work has included a full roof replacement, HVAC overhaul, a full electrical system replacement, new fire and life systems, new security systems with state-of-the-art surveillance, timed locks and key fob access.

The property had Abbott Stringham & Lynch, a San Jose accounting firm, as an anchor tenant in the building. This firm had a lease for 24,011 square feet in the property, which expired at the end of 2021. A junior anchor in the property is MORE Physical Therapy, a South Bay physical therapist enterprise. Its lease for 6,192 square feet runs until the end of 2025. Another sizable tenant is Orange Coast Title, which occupies 4,400 square feet in the property, and this firm’s lease lasts through of February 2025.

The class B office building has a number of unique amenities. One of these is an elevator service, which is rare for a building of this size, and it is the only medium-sized office building to have this amenity in the Willow Glen submarket. In addition, asset has 45 covered parking spaces, and it is just fifteen minutes away from the San Jose Mineta International Airport.

The San Jose Class B office market remains relatively tight through the first quarter of 2022. According to data compiled by Colliers International, the office vacancy for Class B assets was at 7.4 percent through the end of last year. This figure had increased slightly from 7 percent from the previous quarter. This is in a submarket that has a total square footage for Class B buildings at 14.3 million square feet.

West Coast Commercial Real Estate News