KBS Sells Two Silicon Valley Office Complex Properties for $95M
The properties, totaling 142,710 square feet of space within District 237, sold to EXAN Group.
SAN JOSE, CA – Commercial real estate investor, KBS has sold two buildings within the class A, office and research and development complex, District 237 in San Jose. The two office properties, totaling 142,710 square feet, sold to the independent real estate fund and asset management company, EXAN Group for $95.2 million.
The properties, owned by KBS Real Estate Investment Trust II, are located at 100 Headquarters Drive and 200 Holger Way within the Silicon Valley submarket of North San Jose.
EXAN Group has been retained to manage both buildings within District 237.
Formerly known as Corporate Technology Centre, District 237 totals 415,492 square feet of space across a collection of eight properties.
Constructed in 1999 and 2001, the one-, two- and three-story buildings within the office complex range from 20,009 square feet to 101,194 square feet, with an average floorplate of nearly 31,500 square feet.
KBS previously sold three of the eight buildings in 2018. The company additionally recently repositioned and rebranded the complex; resulting in a collective 315,622 square feet of new lease agreements with three global companies. Aiming to drive the leasing activity, KBS repositioned one building by executing an open layout, updated common area, a new tenant lounge, fitness center and private outdoor amenity areas.
“Each building in this highly sought-after property features superb visibility from over 3,000 feet of Highway 237 frontage,” states Brent Carroll, District 237 asset manager. “This property’s location has evolved into one of the most desirable in Silicon Valley, with the Highway 237 corridor benefiting from positive new developments and emergence as the prime linkage point for companies drawing employees from either side of the San Francisco Bay.”
“As a real estate fund manager, District 237 meets our current acquisition mandate of core assets with credit tenants within the best submarkets in the US,” says Juan Jose Zaragoza, managing partner and founder of EXAN Group. “This acquisition reflects EXAN’s commitment to deploy overseas capital in the U.S. despite the pandemic, as we continue to demonstrate our ability to execute deals in a timely manner. Our plan is to continue building our portfolio with assets similar to District 237 in the upcoming quarters.”
CBRE’s Northern California capital markets team of Joe Moriarty, Scott Prosser, Jack DePuy, Russell Ingrum, Brad Zampa and Mike Walker brokered the property sale.
Representing KBS as legal counsel in the disposition were Greenberg Traurig LLP’s attorneys, Bruce Fischer, Howard Chu, Chrisdo Fan and paralegal, Amanda Kennedy of the law firm’s Orange County office.
“KBS’ repositioning of District 237, along with this property’s excellent location near dining, daily-needs retail, and lodging, place it on the short list for office tenants seeking space in the Silicon Valley region,” says Moriarty, executive vice president.
“We were very pleased to represent KBS in the disposition of these two buildings at District 237,” said Fischer, Greenberg Traurig’s West Coast real estate practice chair and co-managing shareholder of the Orange County office, who led the Greenberg Traurig team.
