SAN FRANCISCO, July 11, 2019 — Shorenstein Properties LLC (“Shorenstein”), an owner and operator of high-quality office, residential and mixed-use properties across the U.S., today announced that it has sold the Rose Orchard campus in San Jose, California, to Drawbridge Realty Management, a San Francisco-based real estate investment company. The terms of the transaction were not disclosed.
The Rose Orchard complex, conveniently located within the Golden Triangle on Rose Orchard Way in the heart of Silicon Valley, comprises five office and research and development buildings on an 18-acre campus totaling 315,000 square feet. The property has superior access to State Route 237, U.S. Highway 101, I-880 and other major thoroughfares, easily connecting tenants to San Francisco, the Peninsula, East Bay, and downtown San Jose.
Following its acquisition of the property in 2015, Shorenstein invested significant capital and undertook an expansive renovation of Rose Orchard. At the time, Rose Orchard was approximately 30 percent leased, and four out of five buildings on the campus stood vacant. In the last four years, Shorenstein has substantially improved the vacant buildings, including upgrading the entryways and lobbies, building out the interior space with creative and functional finishes and adding outdoor collaborative space. Today, three of the previously vacant buildings have been leased to new tenants, and an existing tenant has leased the fourth, further expanding its presence at the property. The creative work environment is now 100% leased.
“When Shorenstein purchased Rose Orchard in 2015, we recognized that the property had significant potential within the highly attractive Silicon Valley market, providing us with an opportunity to develop a creative workplace environment in an area experiencing strong and growing leasing demand,” said John Boynton, Senior Vice President, Capital Transactions at Shorenstein. “We are pleased with the success of the enhancements made across the property and believe the project illustrates our firm’s ability to reposition and add value to our properties.”
Throughout the renovation project, Shorenstein engaged CBRE and Cushman & Wakefield to lease the property. Shorenstein separately engaged JLL to market the property for sale.
About Shorenstein Properties LLC
Founded in 1924, Shorenstein Properties LLC is a privately-owned, real estate firm that owns and operates high-quality office, residential and mixed-use properties across the U.S., with offices in San Francisco and New York. Since 1992, Shorenstein has sponsored twelve closed-end investment funds with total equity commitments of more than $8.0 billion, of which Shorenstein committed $723.5 million. The firm uses its integrated investment and operating capabilities to take advantage of opportunities that, at the particular time in the investment cycle, offer the most attractive 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 64.1 million square feet in transactions with a gross investment value in excess of $15.2 billion.