SAN JOSE– A two-story property located at 3100 N. 1st St., at the intersection of Montague Expressway and North 1st Street in San Jose-North, one of the fastest growing submarkets in the Silicon Valley, has been acquired by Vista Investment Group LLC. Los Angeles-based law firm, Sklar Kirsh LLP, represented Vista in its acquisition of the 99,494-square foot office building from Menlo Equities in a transaction valued at approximately $27.6 million.
In 2014, San Jose North experienced a net absorption of nearly 1 million square feet, according to CBRE. Built in 1992 and renovated in 2010, the building is 100 % leased to the Broadcom Corporation. Joseph Moriarty of CBRE represented both parties.
For Santa Monica, CA-based Vista Investment Group, whose Northern California portfolio includes 168 multifamily units in San Jose in partnership with an institutional operator, the acquisition marks its first office investment in the Silicon Valley.
Vista Investment group president Jonathan Barach tells GlobeSt.com: “We've seen firsthand the continuing resurgence of the San Jose market through our experience with our multifamily investment. San Jose is leading the country in job growth and is at the center of this tech-driven economic recovery. This is an excellent building leased to a blue chip tenant on a Main and Main location in North San Jose. With all that going for it, we were able to acquire it at an attractive in-place cap rate.”
The property was acquired as part of a reverse 1031 Exchange according to Andrew Kirsh, founding partner and chair of the firm's real estate department, who along with partner, Albert Valencia, advised Vista Investment Group on the complex transaction and acquisition financing.
Kirsh tells GlobeSt.com: “Although more complicated than a traditional 1031 Exchange transaction, Vista Investment Group's use of a reverse 1031 Exchange allowed them to take advantage of a great opportunity prior to selling another asset in their portfolio.”
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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.
