SAN JOSE—This city continues to draw investor interest with its ties to the tech industry and commitment to business growth. Citing Downtown San Jose's changes to the real estate landscape, major infrastructure improvements during the next decade and overall office market appeal, an investor sees the trend continuing to the point of making it official in the form of a purchase.

One Eleven Market Square, a 320,559-square-foot office property in downtown has sold to San Francisco-based real estate firm Ridge Capital Investors LLC. Ridge purchased the property in partnership with an undisclosed commingled discretionary equity fund. Independent investment firm Swift Real Estate Partners sold the property after the completion of significant capital improvements in slightly more than two years of ownership.

“One Eleven Market Square represents an opportunity for Ridge and its capital partner to acquire very well-located office product in one of the most rapidly evolving submarkets in the Bay Area,” Trevor Wilson, Ridge Capital managing director tells GlobeSt.com. “Downtown San Jose has seen dramatic changes to its housing stock and its attractiveness as an office market this cycle and we expect that trend to continue with new major infrastructure improvements over the next decade. During our hold period, we plan to execute meaningful upgrades to the tenant spaces, lobbies and common amenities, building exteriors and parking. When completed, Market Square will compete at the top of the market in downtown San Jose.”

One Eleven Market Square is comprised of two towers—111 West St. John St., rising 12 stories and encompassing 163,775 square feet and 111 North Market St. at 10 stories of 156,784 square feet. San Jose's iconic food and entertainment hub, San Pedro Square, is adjacent to One Eleven Market Square, and tenants enjoy access to more than 100 immediate amenities within walking distance. The transit-oriented property is steps from the VTA light rail with Caltrain and the future BART station within walking distance, and it also offers convenient access to Highways 101, 280 and 880 as well as State Route 87.

Currently 78% leased to a diverse tenant mix across a wide spectrum of industries, One Eleven Market Square tenants include Pacific Business Centers, Rockwell Automation Inc., Kerio Technologies Inc. BAM Labs, Opportunity Fund and Diamanti.

“Market Square is positioned at the apex of the downtown San Jose resurgence,” said Steve Golubchik, co-head of NGKF Capital Markets Northern California who handled the sale together with Edmund Najera and Ben Bucci. “Substantial residential development in the surrounding area coupled with exceptional access to public transit and retail amenities makes Market Square a compelling opportunity.”

Instant Insights /

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