SAN JOSE—Sources tell GlobeSt.com that DivcoWest and its joint venture partner Rockpoint Group have completed the purchase of Riverpark Towers, a 600,000-square-foot class-A office complex near Diridon Station in downtown. The deal closed Wednesday and the recorded price is $283.5 million or $473 per square foot.

One tower includes 300 Park Ave., which is 2009-era construction, and 93.5% leased. The other tower at 333 W. San Carlos was built in 1987 and is 77% leased. The property overlooks the land proposed for Google's campus and until Google builds, is the closest class-A office complex to the main transit hub, Diridon Station. This is where Caltrain, the VTA and eventually BART will connect. It is adjacent to the Guadalupe Freeway (SR-87).

In this value-add acquisition, the new owners bought stable in-place income and vacancy that with some capital investment can be repositioned to appeal to a wide range of tenants. Oracle, PwC, Adobe, SAP and, potentially Google are all operating in this part of San Jose, as are many others.

“Riverpark was acquired at a significant discount to replacement cost and gives us the opportunity to create another superior workplace experience for tenants in downtown San Jose, a market we like and know well, and which is undergoing very positive transformation,” said Chris Eldemir, acquisitions, DivcoWest tells GlobeSt.com.

DivcoWest contends the property is suited for tenants seeking a transit-proximate business location near lifestyle, retail and residential amenities. Riverpark is just two blocks from the San Jose Convention Center, several hotels and numerous restaurants. In addition, more than 2,000 residential units are under construction in the immediate neighborhood.

The property includes an adjacent 10-story parking garage with spaces for 1,397 cars. It also offers tenants onsite amenities including a coffee and wine bar, a bike sharing program, a dining lounge, a game room and a fitness room with showers.

This is DivcoWest's second purchase of a significant downtown office asset this year. In March, DivcoWest acquired 2 West Santa Clara, an 84,000-square-foot office building across from the Santa Clara VTA station. And in 2015, DivcoWest and Rockpoint formed a joint venture to acquire 50 West Fernando.

DivcoWest and Rockpoint now own close to 1 million square feet of class-A office in downtown San Jose. This makes DivcoWest among the largest institutional owners of office space in the market at this time.

Instant Insights /

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