After $50M Sale, Bay Area Office to Go Residential

211 River Oaks Parkway. Image courtesy of CommercialEdge

Global Net Lease Inc. has sold a 164,608-square-foot office campus in San Jose, Calif., for $50 million. GNL originally purchased the property in 2014 for $52.5 million.

Situated on 9.8 acres at 211 River Oaks Parkway, the property comprises three two-story buildings completed in 1982 and completely renovated in 2012, Commercial Edge data shows.

The buyer plans to convert the asset to residential use, said James Nelson, CEO of GNL, in prepared remarks. A filing with the San Jose Planning Department shows that Valley Oak Partners proposed 737 units to be constructed on the site, according to SiliconValley.com.

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The campus is 7 miles from downtown San Jose, across the street from River Oaks Park. Several shopping and dining options are nearby, alongside Interstate 880.

Low office sales volume in the Bay Area

GNL’s property was the largest office asset that sold in San Jose since the beginning of the year, according to CommercialEdge data. The submarket’s sales volume totaled only about 335,000 square feet of office space as of July.

Office sales were scarce in the Bay Area overall as well. The same data provider shows that some 1.6 million square feet traded in the area in the first half of 2023. One of the biggest deals involved a 244,906-square-foot office asset in Santa Clara, Calif., that changed hands for more than $182 million.