SAN JOSE, CA-Irvine, CA-based Bixby Land Co. has purchased a 164,000-square-foot office campus in the heart of Silicon Valley’s Golden Triangle for $19.5 million, with plans to invest an additional $11.4 million on an extensive renovation of the property that will be completed later this year. Bixby assembled the purchase of the vacant three-building campus in two separate sale transactions with sellers Peery Arrillaga and NSJ Investors LLC.
According to a prepared statement, the acquisition occurs as leasing activity for larger blocks of space is on the rise throughout the Bay Area in 2011, with 16 transactions greater than 100,000 square feet signed in the first six months of this year. Silicon Valley has experienced much of this leasing activity as the recovery in the technology sector continues to build momentum.
“Silicon Valley is one of the most active leasing markets in the nation, and it has become increasingly difficult for tenants to find larger blocks of high quality space,” says Bill Halford, president and CEO of Bixby Land Co. in the statement. “This acquisition allows us to transform the campus with a compelling redevelopment and deliver a newly designed project to the market.”
The office campus is ideally suited for a single user seeking a highly amenitized work environment. Located at 211, 251 and 281 River Oaks Pkwy. at Zanker Road, the campus includes three two-story buildings with full glass line on all sides, spacious 10-foot ceilings throughout and floor to ceiling windows on the ground floors. Individual buildings range in size from approximately 41,000 square feet to 75,000 square feet. The campus is adjacent to Cisco’s four-million-square-foot San Jose facilities and is directly across the street from the new five-acre Crescent Park development currently underway.
Bixby plans significant upgrades to the entire property, with particular attention paid to creating a contemporary outdoor space for tenants conducive to either formal or informal gatherings. “We have designed an inviting tenant environment that greatly improves the appeal and functionality of the entire property,” Halford says. Renovations will include improvements to all aspects of the property, including upgrades to the building elevations, redesigned building lobbies, new roofs and HVAC systems and a “make-ready” interior plan for all tenant spaces. The property will also receive new landscaping, hardscaping and project signage.
The acquisition reflects Bixby’s expanded presence in the Silicon Valley, where it currently operates 23 buildings and more than 1.2 million square feet of properties. Bixby currently has a portfolio of five million square feet of properties. The firm is focused on the acquisition of core and value-add investment opportunities, primarily in California. “We are increasingly focused on value-add and opportunistic investments as market fundamentals improve,” Halford says.
Bixby Land Co. represented itself in the acquisition of all three buildings. Seller Peery Arrillaga represented itself in the sale 211 River Oaks Pkwy., while NSJ Investors LLC was represented by Craig Fordyce, Jim Beeger and Mike Rosendin of Colliers in the sale of the two buildings at 251 and 281 River Oaks Pkwy.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
