By Jon Peterson
San Antonio-based USAA Real Estate has placed on the market for sale the 893,000 square foot America Center office asset in San Jose. The pricing guidance on the sale is $625 million, or around $700 per square foot based on that pricing, according to multiple sources that track the sale of major office buildings in the Silicon Valley and San Jose.
The current owner of the property has a regional office in San Francisco located at 101 California Street. Nawder Alavi, executive director of investments for the company in that office, declined to comment when contacted for this story. USAA Real Estate owns the property along with Foster City-based SteelWave, which acts as the operating partner on the asset.
USAA has awarded the listing for the sale to JLL, which will be led by its capital markets team based out of its San Francisco office. JLL did not respond in time for this story.
The planned sale of America Center would represent one of the largest single office property sales by price in San Jose. Another large office building sale occurred in 2019, this was the $429 million trade of the HQ @ First property. The 604,000 square foot building was purchased by Tokyo-based Mori Trust, and it is located at 130 Holger Way.
There are two components to the America Center property. The first is the existing property that totals 893,000 square feet in a mixture of four buildings. The addresses of those buildings is from 6001 to 6280 America Center Drive. The second component is an entitled land parcel with approvals for an additional 200,000 square feet that could be developed in the future.
The existing space essentially has no vacancies. One of the newer tenants to come into the building is Bill.com, which signed an 11-year lease last year for 132,000 square feet at the property. McAfee inked a lease last year for 85,000 square feet. Both of these leases are for 6220 American Center Drive. Polycom has a lease in the building located at 6001 American Center. It will expire in a little more than two years.