Final Transaction Shows High-Level Demand by Tech Tenants

Champion Station is located at a light rail stop and steps from retail on North First Street.

NORTH SAN JOSE, CA— TMG Partners and Fortress Investment Group originally purchased an eight-building, 810,000-square-foot campus from Cisco Systems in 2013 due in large part to its ideal location in a thriving market at a major light rail stop, steps from retail on North First Street and approximately one half-mile from Levi’s Stadium. After executing a major renovation of the building exteriors, interiors and common-area amenities, the project was reintroduced to the market as Champion Station in 2014. The partnership subsequently sold four buildings to an investor in late 2014 and recently closed on the sale of a fifth building to a corporate owner-user in May 2016. TMG and Fortress have now completed the sale of its remaining properties at Champion Station, totaling 287,371 square feet, to a US institutional real estate investor engaged in the ownership of office and mixed-use properties. The remaining assets are fully occupied by Silver Spring Networks and ForeScout Technologies . “North San Jose, and its amenity-rich environment, continues to attract technology companies both locally and internationally,” said David Cropper , TMG Partners director of development.  “Our strategy at Champion Station had been to complement the mixed-use campus setting with onsite improvements designed to encourage innovation, collaboration and healthy lifestyles for prospective tenants and their employees. Our ability to secure quality tenants and to close this final transaction is proof positive of the demand technology tenants have for health-driven offerings, coupled with the amenities of nearby residential, retail, entertainment and transportation options. Jeff Weber, Greg Cioth, Mark Penrod, Andy Zighelboim and Tommy Kim with Eastdil Secured represented both buyer and seller. Cropper tells GlobeSt.com: “All the new tenants at our renovated Champion Station have been drawn to the location, our thoughtful renovations and access to the amenities that make the community here so livable. Hence they are all high-quality companies whose employees demand these benefits that inspire collaboration and innovation.” TMG Partners is a Bay Area mixed-use property developer and Fortress Investment Group is a highly diversified global investment firm with $72 billion in assets under management.