Santa Clara County, which prefers to own its real estate, is looking to expand its nearly 5 million square foot real estate portfolio. It is planning to purchase four buildings located at 110-180 West Tasman Dr. in San Jose that total 435,170 square feet for $174 million, or roughly $400 per square foot. The seller is San Francisco-based Shorenstein, which purchased the assets in September of 2014 for $101 million, or just around $232 per square foot.
The transaction was first reported by the Silicon Valley Business Journal.
“This facility will allow us to address a significant amount the of the county’s acute facility space need,” said Jeff Draper, director of the county’s facilities and fleet department in the report. “It will help us improve the delivery of county services. We are hoping to enhance our employees’ work life experience.”
The first building that the county will occupy is locate at 150 West Tasman Dr. The remaining three will be phased in over the next five years.
The buildings are part of a development that Cisco constructed in 1995 as it was growing its presence across the region. In 2013, San Francisco-based TMG Partners and Fortress Investment Group purchased the eight-building campus totaling 811,000 square feet for nearly $154 million. TMG renamed the property Champion Station and subsequently sold four of the buildings to Shorenstein for $101 million, another three to an entity related to Michael Milken for $122 million in July of 2016, and the last building to GEIRI North America in May of 2016 for $37,652,000. GEIRI is a subsidiary of GEIRI Beijing, which is an institute focusing on the research and development of cutting-edge technologies for a smarter electric power grid.
“The valley is full of all kinds of leased properties that are available, which is good, except that we the county have a preference to own facilities,” added Draper. “We also wanted a campus site that was possibly developable over a period of time and this particular one was the top on our list.”