DivcoWest purchased the portfolio in 1998 in partnership with the Harvard Pension fund, which owns 65% of the investment. The area is surrounded by parks, museums and businesses and is considered one of San Jose's prime real estate areas.
DivcoWest is negotiating terms of the deal with potential buyers. Three bids have been made on the property, which also includes a site that is scheduled for developing an 18-story office tower.
Sources tell GlobeSt.com the selling price will not be comparable to the peak prices of last year, which could have allowed the property to sell at more than $160 million. However, the buildings generate excellent revenue (approximately $17 million NOI) from rent and have a good tenant history, so the asking price is still relatively high.
"It is a great asset. The property is fully occupied," says Staurt Shiff of DivCo West. "It is one of San Jose's best locations; the epicenter of the downtown office market. When BART comes downtown, it will be the corner."
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