Four Corners Lands $67M for San Jose R&D Campus
The owner purchased the property earlier this year.
Four Corners Properties has received $67.4 million in financing for the mixed-phase development of Forge North First, a 205,800-square-foot industrial/R&D campus in San Jose, Calif. CBRE arranged the deal on behalf of the owner and its institutional partner.
An institutional lender originated the five-year, floating-rate, non recourse bridge loan. Four Corners Properties and its partner purchased the asset in January of this year from from BXP—formerly Boston Properties—for $50.5 million.
Located in the Golden Triangle submarket, Forge North First was completed in 1981 on 23 acres. The campus has access to interstate 880 and U.S. routes 237 and 101. Orchard VTA Station is less than a mile away and San Jose Mineta International Airport is some 3 miles southeast.
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The mixed-phase development program includes renovations to the existent structures, such as upgraded power infrastructure, as well as the construction of two manufacturing warehouses totaling roughly 239,000 square feet.
The five single-story buildings in the campus are at 40 Daggett Drive, 2880 N. First St., 70 Daggett Drive, 2885 Zanker Road and 2855 Zanker Road. The latter structure is fully occupied. Combined, the four available buildings feature 10 private offices, four conference rooms, four break rooms, 10 grade-level loading doors and 13-to-16 feet clear heights. The campus has a parking ratio of 3.0 spaces per 1,000 square feet.
The CBRE team included Executive Vice Presidents Mike Walker and Brad Zampa and Senior Associate Andy Gross.
Silicon Valley’s industrial pipeline outpaces R&D
The vacancy rate in Silicon Valley’s industrial sector remained flat at 6.4 percent in the second quarter of this year, according to a Cushman & Wakefield report. Meanwhile, the R&D market saw a slight growth in vacancy, marking a 30-basis-point increase from the previous quarter to 13.3 percent.
Meanwhile, the pipeline in San Jose amounted to 12 new industrial deliveries, encompassing about 1.6 million square feet. In comparison, the R&D sector only had four projects underway, totaling about 1 million square feet, with no deliveries in the second quarter, the same source shows.
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