Valley Oak Partners, the San Jose-based real estate development and investment firm, has just completed the purchase of a 24,000 square foot property in downtown San Jose located at 35 S. Market Street. The building, which was built in 1889, once used to house the Metropole Hotel in San Jose. Valley Oak purchased it for $8,495,000, or roughly $354 per square foot, according to public records.
Investors can’t seem to get enough of downtown San Jose, which has seen a resurgence of investor and developer interest ever since Google had announced that it was working with the city of San Jose and developer Trammell Crow on growing the company’s footprint in the city’s downtown core.
For Valley Oak and its principal Steve Fisher, it was the character of the old building that provided the most interest, he said in an interview with the Mercury News. Also, said Fisher, his company has had experience rehabbing buildings like these in the past, which gives them comfort in approaching an opportunity like this one.
Valley Oak has been in the news recently. The company announced earlier in the summer that it was developing a nearly one million square foot commercial project in partnership with San Francisco-based TMG Partners. This site, located at 440 West Julian Street, is comprised of approximately 5.43 acres and located within the Diridon Station Area Plan, the same neighborhood where Google is also planning its expansion.
As for the site on South Market Street, about half of the property is occupied by Electric Cloud, a privately-held development operations optimization software company. The building serves as the company’s headquarters in San Jose.