FH One Buys Bay Area Office Campus

FH One Investments has acquired Synaptics Headquarters, a 111,000-square-foot office campus in San Jose, Calif. The company paid $29.5 million for the asset, or $265 per square foot. South Bay Development sold the property, according to Yardi Research Data. Newmark represented both parties in the transaction.

South Bay Development first purchased the property in 2011 for $6 million from NXP Semiconductors, the same source shows. In the following years, the asset changed ownership several times between the company and Synaptics, first in 2012 and lastly in 2022, when South Bay purchased the campus again for $37.9 million.

Completed in two phases between 1984 and 1990 across a 24-acre site and completely renovated three years ago, the property consists of three two-story buildings and features average floorplates of 39,321 square feet. Synaptics occupies the entire campus.

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Located at 1109 and 1151 McKay Drive, the property has access to interstates 880 and 680, as well as Highway 101. The San Jose Mineta International Airport and the downtown area are within 3, respectively 4 miles south. Other major companies in the area include Google, Microsoft, Samsung, Dell and Johnson & Johnson.

Newmark Executive Vice Chairman & President Steven Golubchik, together with Vice Chairman Edmund Najera, Managing Director Darren Hollak and Associate Director Brendan Raney worked on behalf of both the seller and the buyer in the transaction.

Bay Area office investments surge

As of June, office listing rates in the Bay Area clocked in at $51.93 per square foot, down 2.5 percent year-over-year, while the national average rose 3.8 percent to $32.87, the latest Yardi Matrix report shows. Office vacancy in the region climbed to 25 percent during the same month, up 420 basis points over a 12-month period.

The market led year-to-date office sales through June, registering nearly $3.2 billion in assets changing hands at an average of $387 per square foot, remaining among the priciest in the Western region.

Among recent deals is Hall Equities Group’s acquisition of Ygnacio Center, a 529,612-square-foot office campus in Walnut Creek, Calif. The company paid $111 million for the three-building complex.