SAN JOSE, CA- The Carlyle Group has acquired a pair of three-story class A office buildings here totaling 377,000 sf. The Newport Beach, CA-based private equity firm revealed the transaction earlier this month but declined to release the sale price. According to sources, the purchase price was approximately $98 million or $260 per sf.

Located at the corner of North First Street and Highway 237, the buildings were built by Cisco Systems in 2001-2002 but never occupied by the company. In October 2005, IBM signed a 12-year lease for 125,000 sf in one of buildings.

The seller, a joint venture of Divco West’s Page Mill Property Fund and California State Teachers Retirement System, acquired the two 188,000-sf buildings along with an adjacent 78,000-sf building at the beginning of 2005 for $52 million or $114.50 per sf.

“Since we were able to purchase the property at a discount to replacement cost, we can provide new space at lower rents than is required for new construction,” says Carlyle managing director Paul Brady. “There are very few options remaining for large tenants in the area who need a Class-A environment with great visibility… .”

Funds for the transaction came from Carlyle Realty Partners V, a U.S.-based fund that makes opportunistic investments in the major metropolitan markets of Boston, Chicago, Denver, Los Angeles, New York, San Francisco and Washington, DC.

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.