By Jon Peterson
San Francisco-based TMG Partners has sold three office buildings in North San Jose known as Champion Station, for $122 million, according to the deed on the sale of the property. The buyer of the property is an entity related to Michael Milken, as stated by sources aware of the transaction.
TMG declined to comment on the sales price and who the buyer is due to a non-disclosure agreement on the sale.
The assets involved in the sale total 287,371 square feet of office space located at 190, 210 and 230 West Tasman Drive in North San Jose. The properties are now 100 percent leased. 210 and 230 Tasman are leased to Silver Spring Networks and 190 Tasman is occupied by ForeScout Technologies. The leases in these buildings were closed in the fall of 2015.
“We have completed our business plan on the last three buildings and that is why we decided to sell the properties at this time,” says David Cropper director of development for TMG. Part of the leasing plan was getting the buildings leased up once the Cisco Systems decided to vacate them.
TMG had owned the last three buildings in a venture with New York City-based Fortress Investment Group. TMG and Fortress originally purchased an eight-building, 810,000-square-foot campus from Cisco Systems in 2013 due in large part to its ideal location in a surging North San Jose market, at a major light rail stop, steps from retail on North First Street and approximately one half-mile from Levi’s Stadium. After executing a major renovation of the building exteriors, interiors and common area amenities, the project was reintroduced to the market as Champion Station in 2014. The partnership subsequently sold four buildings to an investor in late 2014 and recently closed on the sale of a fifth building to a corporate owner-user in May 2016. The remaining assets are fully occupied by Silver Spring Networks and ForeScout Technologies.
Eastdil Secured was the listing agent for both the buyers and the sellers. It was represented in the transaction by Jeff Weber, Greg Cioth, Mark Penrod, Andy Zighelboim and Tommy Kim.