NORTH SAN JOSE, CA–A five-building office campus at 110-180 Rose Orchard Way has been purchased by Shorenstein Properties LLC. Terms of the transaction were not disclosed. Shorenstein made the acquisition on behalf of its 11th real estate investment fund, formed in 2014 with $1.22 billion in committed capital from Shorenstein and its investors. Erik Doyle, Will Connors, Michael Seifer and Rob Hielscher of JLL Capital Markets handled the sale.
John Boynton, vice president, Shorenstein Properties, tells GlobeSt.com: "We plan to complete significant improvements to this property soon and re-introduce it to the market with a new name and look. We have a great opportunity to create a premier corporate campus in this terrific location."
The 18-acre office campus offers a large contiguous block of space. It was completed in 1985 and is currently 30% occupied. Shorenstein plans a multi-million-dollar renovation and repositioning of the property to market 220,000 square feet of space to a variety of corporate users. The campus has been renamed Rose Orchard and, in the coming months, Shorenstein will create additional outdoor collaborative areas that will allow tenants to expand workspace beyond the interior walls. It will also renovate vacant interior space to provide larger users with a distinctive work environment that is in move-in-ready condition.
“This property provides one of the largest contiguous blocks of vacancy in the midst of the Golden Triangle, arguably one of the most hotly contested locations in the country,” said Douglas W. Shorenstein, chairman and CEO, Shorenstein Properties. “By deploying our in-house asset management and operational expertise and investing the appropriate capital, we plan to make Rose Orchard a highly desirable location for tenants seeking to announce or reinforce their presence in Silicon Valley.”
Rose Orchard is in close proximity to all the Valley's major arterial highways, including SR 237, access to which is just minutes away. The property is also in a highly walkable location with easy access to retail and leisure amenities. @First Retail Center, a 10-acre retail village anchored by Target, is within two blocks. The property is just two miles from Levi's Stadium, home of the San Francisco 49ers, and Santa Clara City Center, a 230-acre mixed-use development featuring retail, dining, residential, office and park uses. There are an estimated 4,500 high-density residential units surrounding Rose Orchard.
This is Shorenstein's second major investment in the Golden Triangle for Fund 11 in the last 12 months. Last year, the company acquired Champion Station, a 426,000-square-foot office campus just a 10-minute walk from Rose Orchard on Tasman Drive in San Jose.
Founded in 1924, Shorenstein Properties LLC is a privately owned, real estate firm engaged in the ownership and management of office properties, with offices in San Francisco and New York. As of 1992, Shorenstein had sponsored 11 closed-end investment funds with total equity commitments of $7.9 billion, of which Shorenstein committed $648.5 million. Investments have included ground-up developments, asset repositioning and stabilized assets. Investment structures have included asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures. These funds have invested in properties totaling 58.1 million square feet in transactions with a gross investment value in excess of $13.8 billion. As previously reported, Shorenstein was named a 2015 Green Lease Leader at the US Department of Energy's Better Buildings Summit.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
