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. “