By Jon Peterson
Seattle-based Washington Holdings has bought four single-story R&D buildings in North San Jose on Zanker Road in an asset called Zanker Business Center. The purchase price of these properties was $24.5 million, according to sources familiar with the transaction.[contextly_sidebar id=”xVVXmxZFxEQUgh5H8tw0LeVpV8Az2iIe”]The buyer declined to comment of what it paid to buy the properties and what kind of cap rate the transaction produced. The company does have a regional office in Santa Clara at 1800 Wyatt Drive.
The seller of the property was New York City-based Deutsche Asset & Wealth Management. The San Jose office of DTZ handled the investment sale transaction for the buyer and seller. The people involved were Eric Fox, Robert Gilley and Steve Hermann. The people on the leasing market support were Steve Horton, Gregory Davies, Colin Feichtmeir and Kelly Yoder.
The four properties in the acquisition total 120,400 square feet. The addresses of the assets are 1980 Zanker, 1960 Zanker, 1940 Zanker and 1920 Zanker, and the four buildings were all constructed in 1984. The overall occupancy at the time of the sale was 96 percent leased to Univision Local Media, Sharp Electronics and Hitachi Metals America among others.
The new owner will be making some improvements to the assets going forward. “Washington Holdings plans to reposition the property with the amenities and architecture typical of a modern Class A office/tech park,” says Rosanna Davidson-McMahon, an assistant vice president with Washington Holdings.
There will be a chance to add some value to the properties going forward. “Most tenants are currently below market,” said Davidson-McMahon. She declined to state how far below market the rents in the buildings are.
Washington Holdings owns one other major asset in the San Francisco Bay Area. This is the 46-acre Mission Park in Santa Clara. This site is being renovated and has more new development slated to break ground next year. This will include a hotel and retail center at the corner of Montague Expressway and Mission College Blvd.
According to the company spokesperson, the firm would like to become a bigger player in the San Francisco Bay Area. “We would like to grow our investment portfolio in the Bay Area and are actively seeking additional investment and development opportunities,” said Davidson-McMahon.
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