Despite San Jose’s status as one of the nation’s weakest office markets, the city’s Opus Center has been sold to Equity Office Properties Trust for $103 million. The sale price translates into about $300 per sq. ft.
The office vacancy rate in San Jose was hovering near 25% at the end of December. That’s far higher than the national average of roughly 15%.
Phoenix-based developer Opus West built the 16-story Opus Center in 2001 for roughly $75 million, and it is considered to be one of Silicon Valley’s most desirable office properties due to its central location. The Opus Center, which is 25% vacant, is located near another EOP office property, 10 Almaden Boulevard, which is 100% leased.
EOP also has sold 14 other office properties throughout the nation for a total of $177 million. The dispositions are part of EOP’s plan to limit its exposure in select secondary markets. The company owns about 30 million sq. ft. of office and industrial space in the Bay Area, with an additional 11 million sq. ft. in the South Bay.