By Jon Peterson
San Francisco-based TMG Partners has sold the 95,550 square foot 250 West Tasman Drive office building in North San Jose for $394 per square foot or $37.6 million, according to sources familiar with the transaction.
TMG declined to comment on the sale price of the property when contacted for this story. The property was acquired by GEIRINA, a China-based energy company. The company was represented in the transaction by Kidder Mathews through its China serves team. This realty company was led by Skip Whitney, partner and executive vice president, and Eric Bluestein, partner and executive vice president. Due to a non-disclosure agreement, Whitney could not comment on the purchase price of the property.
“The China-based buyer is planning to use the building for its corporate headquarters building in the United States. It will not be taking all of the space in the building. It has not been determined how much actual space it will be occupying. Any space that it doesn’t take will be leased to other tenants,” said Whitney.
The new owner of the company will have the benefit of having less expensive source of energy. “This building is located in an area that has a power source that is not coming from PG&E and was setup when Cisco had owned the building. It will give the new owner energy that costs 20 percent less than the rest of San Jose,” says David Cropper, director of development.
When the property was sold there were no tenants in the building. “We would have been happy with either a lease or sale of this building. Because of the situation when we sold the asset, there was no cap rate associated with sale of the property,” said Cropper. TMG sold the building with Colliers International and JLL. The listing agents were Craig Fordyce and Mike Rosendin of Colliers and Scott Mathisen of JLL.
TMG had owned the property in a venture with New York City-based The Fortress Group. “We both had agreed that either a lease or a sale of 250 West Tasman would have been a good option for us,” said Cropper. They had purchased the former eight-building Cisco campus in September of 2013 for $153.7 million. One year later it sold half of the buildings to San Francisco-based Shorenstein for around $100 million. There are tenants in the remainder of the project, which include ForeScout Technologies and Silver Spring Networks.
Cisco had moved out of the buildings in various stages. It occupied one of the buildings as late as January of 2014. The tenant left two other buildings over the next year. TMG had added some improvements to 250 West Tasman. This included painting the outside and new landscaping.