By Meghan Hall
The future of the office may be unclear, but major investors are betting big on Bay Area assets. In a deal that recorded just yesterday, San Francisco-based Shorenstein has purchased two buildings and a parking lot in the America Center office complex in San Jose. Shorenstein paid $235 million for the properties according to sources familiar with the deal.
The two buildings are located at 6001 and 6201 America Center Drive and were part of the first phase of the campuses’ development about eight years ago. The America Center was developed by USAA Real Estate and Steelwave between 2013 and 2018. The first two buildings–America Center I and II, were finished in 2013 and total 430,852 square feet, and according to a statement released by brokerage firm JLL, the buildings are 98 percent leased. The subsequent buildings, known as America Center III and IV, were finished in 2018. Those buildings total 449,995 square feet.
“The campus offers tenants the opportunity to expand and grow, the highest quality of construction, exceptional building ownership and management, as well as stunning panoramic views and state-of-the-art on-site features, such as View Dynamic Glass and NanaWall doors to allow for an open air lobby and Wifi throughout the campus,” states USAA’s website.
Since completion, USAA had been holding onto the asset. USAA also notes that zoning for a fifth building is approved and would allow for up to one million square feet of commercial space total. In all, the entire campus totals about 30 acres. On-site amenities include “spa quality” onsite fitness centers, sports park, open space, and immediate access to bike and jogging trails.
JLL’s Capital Markets team advised the sellers in the deal. Shorenstein also obtained a loan of $179.3 million via Blackstone Mortgage Trust to aid in the acquisition of the asset. Shorenstein has been one of the largest investors in Bay Area assets over the years. In 2020, the company sold Santa Clara Towers for $195 million, or about $438 per square foot. The company also owns Jones Berkeley, a 170-unit residential community, 1400-1500 Seaport Boulevard, a 448,000 square foot office project in Redwood City, Calif., and more. Currently, the company has $8 billion total assets totaling 23 million square feet as part of its national portfolio.