SAN JOSE, CA-GlobeSt.com has exclusively learned that W3 Partners, an institutional real estate investment manager and operating company, and AllianceBernstein U.S. Real Estate Partners LP, have signed a 10-year, 64,336-square-foot, full-building lease with Maryland-based Ciena Corp. The building is located at 3939 North First St. in San Jose and will be a relocation from another San Jose location.
Ciena Corp., a provider of communication networking equipment, will complete its tenant improvements over the summer and plans to move into the building this September. Industry sources tell GlobeSt.com that the lease value is about $16.4 million.
The building complex was acquired by the W3 joint venture in December 2012 from Prologis. At the time of purchase, the building was vacant with some improvements completed. W3 created a market-ready building with flexible workspaces and added amenities sought by tech companies, according to a prepared statement.
Susan Sagy, co-founding and managing partner of W3 Partners says “After just five months of ownership and only a month after completion of our improvements, W3 has fully leased the 3939 North First Street building in San Jose. We were able to accomplish our goal for this asset—which was to add significant long-term value creation by upgrading the improvements to the quality and creative standards required by today's technology tenants and then leasing it quickly to a strong tenant.”
W3 was represented by Steve Horton, Alan Gutterman and Jon Decoite of Cassidy Turley. Ciena Corp. was represented by Jerry Inguagiato and Gil Hutzler of CBRE.
“A common thread in our investment philosophy is to buy well-located assets, which appeal to the innovative companies that dominate our West Coast markets. We have studied these companies and have deep knowledge and experience in creating the environments they seek,” says Diane Olmstead, co-founding and managing partner at W3.
This transaction represents the second corporate headquarter project completed and leased by W3 Partners in Silicon Valley in the past year. The firm previously acquired a three-building campus on Rio Robles in North San Jose and leased the only vacant building in the complex to Extreme Networks in December 2012.
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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.
