SAN JOSE, CA-A southern California investor paid nearly $12 million for Civic Center Tower, GlobeSt.com has exclusively learned. The 13-story distressed office and retail property is located at 675-695 N. 1st St. in San Jose.
The 109,850-square-foot property was built in 1966 and a 4,300-square-foot retail building on the corner of the property. The seller of the foreclosed property was commercial mortgage special-servicing company LNR Property LLC.
The amount borrowed against the property by an earlier owner was $16.5 million in 2007. The recent purchase was made entirely with cash.
Anton Qiu, a principal in TRI Commercial/CORFAC International's San Francisco office represented the buyer. Qiu was named asset manager of the two properties and will work with San Jose-based Michael Joseph and David Silberstein of Meacham/Oppenheimer Inc./CORFAC International to manage marketing and leasing.
TRI Commercial/CORFAC International was assigned the property management contract for the two buildings.
Chicago Title Co. leases 25% of the square footage, which it uses for its Santa Clara County offices. Other existing tenants include State Bank of India on the ground floor and several law firms and other professional tenants. The retail property is vacant and was formerly occupied by a bank.
The buyer hopes to capture an initial yield in the range of 6.5% based on new leases struck at current market rates, Qiu says. Assuming no new tenants before then, occupancy in the property will go down to 75% in November after the Santa Clara County Housing Authority leaves 8,600 square feet. The property was 83% occupied at sale.
“My client felt there was a lot of value in this transaction. I'm now in contract negotiations to bring in some new tenants. The new owner is taking a long-term view and plans to hold on to the property for a long time,” Qiu adds.
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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.
