Big north San Jose office complex trades for huge profit amid tech boom

SAN JOSE — A big office campus in north San Jose has been
bought for nearly $130 million amid a boom in the tech sector — a
huge jump from what the sellers paid for the complex a few years

Drawbridge Realty Management, acting through an affiliate, has
bought the Rose Orchard office and research campus in a deal that
suggests the hiring boom in the Silicon Valley technology industry
continues to exert a major influence on the region’s economy,
including its commercial real estate sector.

San Francisco-based Drawbridge, a real estate investment firm.
paid $128.2 million for the complex of five buildings, according to
Santa Clara County property documents that were filed on July

That represents an 83 percent jump from the estimated $70.2
million that the seller, Shorenstein Properties, paid in 2015 when
the prominent developer bought Rose Orchard and embarked on a
wide-ranging renovation and facelift for the office complex.

“When Shorenstein purchased Rose Orchard in 2015, we
recognized that the property had significant potential within the
highly attractive Silicon Valley market, providing us with an
opportunity to develop a creative workplace environment in an area
experiencing strong and growing leasing demand,” said John
Boynton, a senior vice president with Shorenstein.

Four of the five buildings in the 315,000-square-foot campus
were vacant at the time Shorenstein bought the property, which is
located on Rose Orchard Way a short distance from the interchange
of State Route 237 and Zanker Road.

Now, the campus is 100 percent leased. A marketing effort
spearheaded by commercial real estate brokerages Cushman &
Wakefield and CBRE helped the complex to land tenants such as
Zscaler, LitePoint, and Labcyte.

To revive the property, Shorenstein launched a $30 million
renovation of the site. The developer upgraded the entry areas and
lobbies, renovated the interior spaces, and added outdoor gathering

The Rose Orchard office park that Shorenstein renovated is also
just down the street from a big San Jose office campus on Holger
Way occupied by Micron Technology that a famed Japan-based
developer, Mori Trust, bought in March for a head-spinning $429

“We are pleased with the success of the enhancements made
across the property and believe the project illustrates our
firm’s ability to reposition and add value to our properties,”
Boynton said. JLL, a commercial real estate firm, helped to arrange
the purcbase of the office park.

Source: FS – All – Real Estate News 1
Big north San Jose office complex trades for huge profit amid tech boom