By Kate Snyder
Almost two years after purchasing an office building in north San Jose, the Santa Clara County Housing Authority has sold the space at approximately a 34 percent loss.
When it was originally purchased in 2020 by the housing authority for $37.35 million, the building was slated to be the organization’s new headquarters, according to The Registry’s previous reporting. On Wednesday, the housing authority sold the building for $24.5 million, according to a report by The Mercury News.
The buyer was an entity affiliated with Alvarez & Marsal Capital Real Estate, according to The Mercury News.
The housing authority bought the building on Dec. 16, 2020, from China-based Han’s Holdings, according to previous reporting by The Registry. Located at 3553 N. First Street, the building totals 86,100 square feet. An affiliate of Han’s Holdings—listed as Han’s San Jose Hospitality— first purchased the asset in March of 2017 for $36.15 million, or about $420 per square foot.
A memo released by the SCCHA at that time stated that the move would not only provide the SCCHA with a strategic office location and proximity to public transportation, but an increase of space, partially prompted by the pandemic.
According to The Mercury News report, the Housing Authority determined that the cost of renovating the building ranged from $23 million to $40 million, the latter exceeding what the government entity paid for the property.
The building is located near Moitozo Park and according to Google Maps, other entities in the surrounding area include SunPower Corporation, Analog Devices, Inc., and The Market at North Park.
Based in El Segundo, Calif., Alvarez & Marsal Capital Real Estate is the real estate investment management arm of Alvarez & Marsal, a global professional services firm that has been in operations since 1983. A&M CapRE was formed in 2008.
“Our current focus is on meeting the demand for ‘creative’ office space in major Western U.S. markets through the adaptive reuse and repositioning of existing assets,” the firm states on its website.