|EXAN Group has acquired two buildings totaling 142.7k sf of space at District 237, a Class A office/R&D complex in North San Jose, for $95.2 mil, or $667/sf. The buildings, located at at 100 Headquarters Drive and 200 Holger Way, were sold by KBS Real Estate Investment Trust II.
Built in 1999 and 2001, District 237, formerly known as Corporate Technology Centre, was built with eight one-, two-, and three-story buildings. The buildings feature excellent window lines and efficient floorplates, according to Brent Carroll, asset manager for District 237 and senior vice president for KBS. In 2018, the company sold three of the eight buildings.
District 237 is located directly adjacent to @First retail center, which has attracted a rich mix of neighborhood amenities including Target, CVS Pharmacy, Fresh and Easy, Chipotle, Coffee Bean, Chick-fil-A, Panera, Chase Bank, Marriott Courtyard, Hotel Sierra and many others. EXAN Group will be retained as management of District 237.
“North San Jose, with its close proximity to tightly occupied Silicon Valley cities such as Palo Alto and Mountain View, is one of those markets,” noted Rodney Richerson, regional president, western region, for KBS. “Tech tenants who like Silicon Valley and are seeking more competitive rates are drawn to this submarket, and discerning office investors like EXAN Group recognize how an institutional-grade property like District 237 adds value to their portfolio.”
Carroll points out that the collection of buildings at District 237 range from 20k sf to 101.2k sf, with an average floorplate of nearly 31.5k sf, which attracts larger, well-capitalized tenants with high credit quality. KBS recently repositioned and rebranded District 237, which resulted in a combined total of 315.6k sf in new leases with three global companies at the property.
The sale of the Property was brokered by the CBRE Northern California Capital Markets Team consisting of Joe Moriarty, Scott Prosser, Jack DePuy, Russell Ingrum, Brad Zampa and Mike Walker. Attorneys Bruce Fischer, Howard Chu and Chrisdo Fan, and paralegal, Amanda Kennedy, of global law firm Greenberg Traurig, LLP’s Orange County office, represented KBS as legal counsel in the disposition.