By Meghan Hall
San Jose-based Toeniskoetter Development is investing big in its hometown with the purchase of two North San Jose buildings, currently leased by Santa Clara County and Google, for $54.1 million. The buildings, located at 2460 and 2480 North First St., total 147,744 square feet and traded for about $366 per square foot, according to industry reporting and public documents.
The Silicon Valley Business Journal first reported the sale.
TMG Partners was the seller in the transaction, releasing the property almost three years after it had purchased the asset in August of 2016 for $34.15 million. Cushman & Wakefield represented both parties in the deal. When TMG took ownership of the building, the firm hired Oakland, Calif.-based Lowney Architects and San Jose, Calif.-based McClarney Construction to perform lobby, corridor, gym, conference area and bathroom upgrades. TMG also completed several capital projects to both buildings and has completed two-market ready suites of 2,255 square feet and 22,371 square feet that were being marketed for immediate occupancy at the time of the property’s sale, according to TMG’s site.
However, the property is well-poised for future redevelopment; major companies such as eBay and Paypal are located just up the street, while Apple Inc. owns more than 80 acres of land nearby. The property is easily accessible by Interstate 880, Highway 101 and the Montague Expressway. The regional light rail and San Jose International Airport are also just minutes away. Other eateries such as Starbucks and Specialty’s Café serve those in the immediate area.
According to Cushman & Wakefield’s Silicon Valley Office Market Report from the fourth quarter of 2018, major expansions by technology tenants into submarkets such as North San Jose continue to drive investor optimism. Key transactions in San Jose in the fourth quarter included 2 First St. N., which sold for $15,500,000 or $319 per square foot, to Lesiure Sports, Inc., and 52-78 Santa Clara St. E., which was purchased by Leslie J.