Grosvenor Buys Toshiba Campus for $109M

2610 Orchard Pkwy.

Grosvenor Americas has acquired Orchard Trimble, a three-building office and R&D campus in North San Jose, Calif. The investor paid $108.5 million for the asset, according to records filed with the Santa Clara County Recorder’s Office. Gaw Capital Partners sold the asset through its Downtown Properties LLC.

Records also show the sale was subject to an acquisition loan, provided by Société Générale. The campus last traded in 2018, according to CommercialEdge, when Gaw Capital Partners acquired it for $93.5 million from DivcoWest—a sale funded through a $62 million loan held by Deutsche Bank.

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The Orchard-Trimble office campus is in the Golden Triangle area of North San Jose, on a 10.4-acre site within 2 miles of Interstate 880 and State Route 101. The VTA Light Rail Green and Blue lines can be accessed nearby. The three buildings are located at 2610 and 2630 Orchard Parkway, and 55 W. Trimble Road, and comprise 218,645 square feet of office space.

The two- and three-story buildings range in size from 54,093 to 91,722 square feet and were originally constructed in 1984. The campus underwent a full renovation between 2014 and 2015. The previous owner applied an extensive upgrade program, including a new amenity space designed by HMH Landscape Architects, which included the addition of a bocce ball court, movie viewing terrace, outdoor kitchen and others. The renovation also featured the addition of Viracon glass for energy efficiency.

The campus is fully leased by Toshiba America Electronic Components Inc., the U.S. storage and semiconductor division of Toshiba Corp.

“Our investment in Orchard Trimble reflects our conviction in the long-term, enduring attractiveness of vibrant urban areas. Silicon Valley benefits from agglomeration effects due to the co-location of high-productivity technology employers, and we expect these effects to remain going forward,” a Grosvenor spokesperson told Commercial Property Executive.

Sustainability goals

2630 Orchard Pkwy.

Grosvenor plans to enhance sustainability measures at the Orchard-Trimble campus, as part of its commitment to achieve net-zero carbon operational emissions by 2030. Grosvenor will implement the use of renewable energy at the campus, along with an optimization program. Furthermore, this commitment aligns with Toshiba’s own sustainability targets for its operations.

“As a signatory to the World Green Building Council’s Net Zero Carbon Buildings Commitment, Grosvenor has pledged to achieve net-zero carbon operational emissions for all its directly managed buildings globally by 2030 and advocate for all buildings to be net zero carbon in operation by 2050”, the spokesperson added for CPE.

The developer-investor acquired the Orchard-Trimble campus at roughly $492.2 per square foot, a significantly lower rate than the $584 average recorded in Bay Area office sales this year, CommercialEdge data shows. The buyer stated that the campus fits within its strategy of identifying long-term holding opportunities.

Demand for high-quality, sustainable buildings in San Jose isn’t showing signs of slowing down. A Class A, LEED Gold-certified office campus traded recently for $235 million. Shorenstein Properties acquired the property—which includes a 200,000-square-foot development site—from USAA Real Estate.

Earlier in August, KKR completed the region’s largest office transaction so far in 2021, with the $535 million acquisition of HQ @ First from Mori Trust Co.