Silicon Valley tech campus sold in mega real estate deal

A New York City-based real estate investment firm has just bought a huge technology campus in North San Jose that includes three large buildings near Highway 237 and North First Street. The 603,000 square meter office campus is called HQ @ First and is currently used by the semiconductor company Micron and the cloud security company Zscaler.

‘KKR Real Estate Select Trust Inc.’ (KREST) ​​is the buyer and announced the sale in a press release early Monday morning. The sale came at a price of $ 535 million, which includes an adjacent parking garage, according to Mercury News. Japanese real estate investor Mori Trust paid $ 429 million for the property in 2019, and the property has almost doubled in value in nearly five years, according to the Silicon Valley Business Journal.

“HQ @ First is a marquee with great amenities, including on-site laboratory facilities and access to Silicon Valley’s immense talent pool. Well-located, award-winning assets that can provide a dynamic work environment for innovative growth will provide companies with significant endurance and long-term value “, said Justin Pattner from KREST in a statement about the buildings with the addresses 110, 120 and 130 Holger Way.

Commercial real estate company Newmark arranged the deal. A 2017 statement from this company described some of the property’s amenities, including landscaped walkways, sweeping views, patio and BBQ areas, basketball court, fitness center, game room, 300-seat cafeteria, and large executive shop Area. There is also a large mall nearby with a Target and other popular shops and restaurants.

KREST released this statement on the First @ HQ purchase: “The investment is part of KREST’s premier single-tenant investment strategy, one of the Fund’s three main investment strategies, which targets high-quality commercial properties with long-term leases to individual investments. The purchase increases the value of the underlying property in the KREST portfolio to more than $ 1 billion and continues KKR’s focus on investing in attractive commercial properties on the west coast. “