SAN JOSE, CA-On consecutive days late last week, BEA Systems sold an entitled 40-acre parcel in North San Jose for $108 million and then purchased 488 Almaden Blvd., a 17-story, 381,000-sf office building in Downtown San Jose for $135 million. The publicly held enterprise infrastructure software firm plans to relocate its headquarters to the building in the second quarter of 2008 from 111,000 sf in two buildings at 2314-2345 North First St. in San Jose.

The North San Jose property was sold to developer and fund manager Tishman Speyer. The site is entitled for 2.8 million sf of high-rise and mid-rise class A office as well as 100,000 sf of supporting retail. Tishman Speyer is looking to break ground this year en route to a phased opening beginning in early 2009.

The Downtown office tower was acquired from the Sobrato Foundation, a charitable foundation of Sobrato Development Cos., which developed the building and also owns BEA’s existing headquarters. Sobrato has also begun marketing BEA’s existing location “as is” for $2.75 per sf.

Phil Mahoney, Jay Phillips and Jay Belquist of Cornish & Carey Commercial/Oncor International represented BEA in both transactions. The transaction caused a decrease in the Downtown San Jose vacancy rate from nearly 19% to 12.7%, according to C&C.

A source at C&C tells that BEA entitled the site prior to a change in rules that now requires developers to an infrastructure fee to the city equal to $10 per sf that will be built. As a result, the site is grandfathered in and Tishman Speyer will not have to pay the fee prior to developing the property. Offsetting that missed income for the city is a $13-million parking revenue sharing agreement lease between BEA and the City of San Jose that will benefit the community and the city’s Convention Center parking needs, according to C&C.

Frank Jesse, vice president of real estate for BEA says employees will benefit from the proximity to amenities and cultural events. Adobe Systems also keeps its headquarters in Downtown San Jose.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.