Seattle-based Washington Holdings is making its Silicon Valley footprint bigger and bigger—1.5 million square feet across 43 buildings. The real estate owner/developer just spent $55.3 million, or roughly $248 per square foot, on San Jose’s Montague Square, located across six buildings at 3099 North 1St Street. The seller of the 222,593-square foot campus was Boston-based TA Realty Associates, which had acquired the property in October of 2013 for its Realty Associates Fund X from Embarcadero Capital for $39,440,000, according to public records. The Silicon Valley Business Journal first reported the most recent sale.
Some of the tenants in the property include Objectivity, Boston Scientific and Kawasaki Robotics, according to Google Maps.
Washington Holdings is continuing to expand its presence in the region, following a very active third and fourth quarters of 2017. In two transactions, one in August and another in November of 2017, the company paid $150 million to acquire two other assets in San Jose.
The $60 million purchase in San Jose was for the 250,000 square-foot, six-building North First Street Corporate Center located on Daggett Drive between North First Street and Zanker Road. The seller of this property was also TA Realty Associates, which had owned the buildings since September of 2014, when it bought them from PCCP for $48,850,000.
In November of 2017, the company spent another $90 million to acquire the eight-building Montague Oaks Business Park located at 611-697 River Oaks Parkway. The 268,000 square-foot property sold for nearly $336 per square foot, which represents the third time this property has traded since 2011. According to CoStar, Eagle Ridge Partners and CarVal Investors purchased the property from Prudential Real Estate Investors and McCandless Management Corporation in July of 2011 for $39.5 million. Three years later, the asset traded to San Francisco-based PSAI Realty Partners for $50.5 million, according to public documents, and a third trade three years later brought the sale price to $90 million.
Just like with these two recent purchases in San Jose, so too with this latest one, Washington Holdings plans to invest in upgrades. The company plans to fully reposition the asset, upgrading the facade, adding amenities, new landscaping and signage, according to Casey Holt, vice president and general manager of Washington Holdings in Santa Clara, who was quoted in the report.
Cushman & Wakefield’s Eric Fox, executive managing director in the firm’s San Jose office, and Steve Hermann, executive managing director in the company’s San Francisco office, represented the buyer, Washington Holdings, in the transaction.