Private equity real estate company KBS has sold two additional buildings at District 237, a Class A office/R&D complex in San Jose, California.
The buildings owned by KBS Real Estate Investment Trust II at 100 Headquarters Drive and 200 Holger Way, 142,710 square-feet of the property were sold to independent real estate fund and asset management company EXAN Group for $95.2 million. EXAN Group will be retained as management of District 237.
District 237, formerly known as Corporate Technology Centre, is located in the North San Jose submarket of the Silicon Valley, a highly desirable area of Northern California among office users, according to Rodney Richerson, regional president, western region, for KBS.
“KBS consistently identifies exceptionally well-located assets in markets where powerful value creation is possible,” says Richerson. “North San Jose, with its close proximity to tightly occupied Silicon Valley cities such as Palo Alto and Mountain View, is one of those markets. Tech tenants who like Silicon Valley and are seeking more competitive rates are drawn to this submarket, and discerning office investors like EXAN Group recognize how an institutional-grade property like District 237 adds value to their portfolio.”
Built in 1999 and 2001, District 237 was built with eight one-, two-, and three-story buildings. The buildings feature excellent window lines and efficient floorplates, according to Brent Carroll, asset manager for District 237 and senior vice president for KBS. In 2018, the company sold three of the eight buildings.
“As a real estate fund manager, District 237 meets our current acquisition mandate of core assets with credit tenants within the best submarkets in the U.S.,” says Juan Jose Zaragoza, managing partner and founder of EXAN Group. “This acquisition reflects EXAN’s commitment to deploy overseas capital in the U.S. despite the pandemic, as we continue to demonstrate our ability to execute deals in a timely manner. Our plan is to continue building our portfolio with assets similar to District 237 in the upcoming quarters.”