Shorenstein Buys 5-Building North San Jose Campus for $70.25MM

Rose Orchard Offers Large Contiguous Block of Space in Highly Desired North San Jose

(EDITOR’S NOTE: According to sources familiar with the details of the transaction, the roughly 314,000 square foot campus sold for approximately $230 per square foot, or approximately $70.25 million. Erik Doyle, Will Connors, Michel Seifer and Rob Hielscher of JLL handled the sale for the seller.)

North San Jose, CA – June 25, 2015 – Shorenstein Properties LLC, a private real estate investment firm and fund sponsor engaged in the ownership of high quality office and mixed-use properties nationwide, today confirmed the purchase of a five-building office campus at 110-180 Rose Orchard Way in North San Jose.

The 18-acre office campus completed in 1985 is currently 30 percent occupied. Shorenstein intends to undertake a multi-million dollar renovation and repositioning of the property and market 220,000 square feet of space to a variety of corporate users. The campus has been renamed Rose Orchard and, in the coming months, Shorenstein will create additional outdoor collaborative areas that will allow tenants to expand their workspace beyond the interior walls. It will also renovate vacant interior space to provide larger users with a distinctive work environment that is in move-in-ready condition.

“This property provides one of the largest contiguous blocks of vacancy in the midst of the Golden Triangle, arguably one of the most hotly contested locations in the country,” Douglas W. Shorenstein, Chairman & CEO, Shorenstein Properties. “By deploying our in house asset management and operational expertise and investing the appropriate capital we plan to make Rose Orchard a highly desirable location for tenants seeking to announce or reinforce their presence in Silicon Valley,” he added.

Rose Orchard sits in a superior location close to all the Valley’s major arterial highways, including SR 237, access to which is just minutes away. The property is also in a highly walkable location with easy access to retail and leisure amenities. @First Retail Center, a 10-acre retail village anchored by Target, is within two blocks. The property is just two miles from Levi’s Stadium, home of the San Francisco 49ers, and Santa Clara City Center, a 230-acre mixed-use development now under construction and featuring retail, dining, residential, office and park uses. There are an estimated 4,500 high-density residential units surrounding Rose Orchard.

Terms of the transaction were not disclosed. Shorenstein made the acquisition on behalf of its eleventh real estate investment fund, formed in 2014 with $1.22 billion in committed capital from Shorenstein and its investors.

This is Shorenstein’s second major investment in the Golden Triangle for Fund 11 in the last 12 months. Last year, the company acquired Champion Station, a 426,000 square foot office campus just a ten minute walk from Rose Orchard on Tasman Drive in San Jose.

About Shorenstein Properties LLC
Founded in 1924, Shorenstein Properties LLC is a privately-owned, real estate firm active nationally in the ownership and management of high-quality office properties, with offices in San Francisco and New York. Starting in 1992, Shorenstein has sponsored eleven closed-end investment funds with total equity commitments of $7.9 billion, of which Shorenstein committed $648.5 million. Shorenstein uses its integrated investment and operating capabilities to take advantage of those opportunities which, at the particular time in the investment cycle, offer the most attractive risk-adjusted returns. Investments have included ground-up developments, asset repositioning and stabilized assets; investment structures have included asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures. These funds have invested in properties totaling 58.1 million square feet in transactions with a gross investment value in excess of $13.8 billion.

West Coast Commercial Real Estate News