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12/17/25
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BKM Capital Partners and Kayne Anderson Real Estate have acquired PacTrust Business Center, a 94.3k sf industrial campus in North San Jose, for $30 mil ($318/sf). The property sits on 7.3 acres at 780 Montague Expwy, minutes from I-880, Hwy 101, and SR-237.
Business Center consists of seven buildings with 38 units averaging 2.5k sf, situated within the city’s highly coveted Golden Triangle area. The property features heights ranging from 15.1 to 15.3 feet, 53 grade-level doors, and parking for 285 vehicles. The campus, which will be renamed Montague Exchange, is currently 96% leased to a diverse tenant roster anchored by engineering, manufacturing, and technology users.
Built in 1982 and meticulously maintained, the property has sustained occupancy above 90% for more than a decade. Nearly one-third of current tenants have been onsite for 10 years or longer, supported by high-end interior finishes and functionality that caters to evolving user needs. No single tenant occupies more than 5.3% of the space, minimizing rollover risk and enhancing portfolio stability.
The site enjoys immediate access to light rail, the Milpitas BART station, and San Jose Mineta International Airport. It also sits at the center of a dense employment and housing corridor, with more than 77,000 professionals working in tech and manufacturing within a three-mile radius, and nearly 6,500 new multifamily units recently delivered or under construction.
BKM plans to renovate the asset to its brand standards and optimize long-term leasing performance. Planned improvements include roof and HVAC replacements, paint, concrete wall repairs, landscaping, parking lot resurfacing, and new signage. Funds have also been earmarked for tenant improvements and commissions to further strengthen rollover execution.
PacTrust was represented by Cushman & Wakefield in the deal. Brett Turner, Senior Managing Director of Acquisitions & Dispositions at BKM, led the acquisition on behalf of the buyer, with support from Michael Grossner, Director of Acquisitions and Dispositions. The transaction represents a 55% discount to replacement cost and strengthens BKM’s foothold in the Silicon Valley’s specialized industrial market.
“With more than 20 msf converted to other uses over the past decade, Silicon Valley’s light industrial inventory is disappearing faster than it’s being replaced,” said Turner. “This strategic acquisition gives us a high-performing asset in the heart of the Valley’s innovation corridor—offering suite sizes, infrastructure, and a location that are becoming increasingly hard to replicate.”
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