Orchard Corporate Center, a newly constructed and fully leased 101,374-square-foot office and R&D campus in North San Jose, has changed hands.
Los Gatos-based developer South Bay Development Co. sold the Class A complex to a private investor, according to Cushman & Wakefield, which advised the sale. The property sold for $47.8 million, the Mercury News reported, citing property records, and the buyer was an entity affiliated with San Francisco Prosperity, a firm headed by Burlingame-based Michael Tzu-Wen Wang and Victor Lo.
Orchard Corporate Center includes two office and R&D buildings on 5.31 acres at 2755 and 2777 Orchard Parkway.
Both buildings are 100 percent leased, the Cushman & Wakefield noted. Last year, telecommunications equipment provider Calix moved its headquarters and about 150 employees into the 65,000-square-foot office building at 2777 Orchard Parkway. Semiconductor company MegaChips is the tenant in the other building.
In recent years, North San Jose has drawn renewed interest from developers with big ambitions, as well as large companies looking for space to build new corporate campuses. The area has long been home to PayPal Holdings and Cisco Systems. Now, Hewlett Packard Enterprise Co. is in the processing of moving its headquarters from Palo Alto to 6280 America Center Drive in North San Jose. Apple Inc. and Google have also purchased large sites in the city's north side, though how they'll use the space remains unclear.
“Orchard Corporate Center is a strong-performing, high quality asset fully leased to two long-term tech tenants and is surrounded by some of the world’s biggest and most influential technology companies,” Cushman & Wakefield Managing Director Eric Fox said in a statement announcing the deal. “The property represents the first new construction project on Orchard Parkway in 17 years, while major renovations have been completed on nearly every building situated on Orchard Parkway between North First Street and Trimble Road, substantially upgrading the overall quality and value of the neighborhood.”
Fox, along with Adam Lasoff, Seth Siegel, Steve Hermann, and Ryan Venezia of Cushman & Wakefield’s Northern California Capital Markets Group, advised the seller in the deal. Nick Lazzarini and Kalil Jenab of Cushman & Wakefield’s Silicon Valley offices assisted and negotiated the leases with the current tenants, according to the brokerage.