TMG Partners Acquires San Jose Office Assets
Santa Clara County has signed a long-term lease at the property.
TMG Partners, together with global investment firm KKR, has acquired Skyport Plaza, a 435,000-square-foot office and retail complex in San Jose, Calif., from Hudson Pacific Properties for $75.5 million. The properties are located at 1650 Technology Drive, 1700 Technology Drive, 50 Skyport Drive and 90 Skyport Drive.
In conjunction with the acquisition, TMG Partners signed a long-term lease with the County of Santa Clara to occupy the property after extensive renovation of the two office buildings. The county’s occupancy is slated to commence in the first quarter of 2029.
The property consists of two eight-story office towers totaling about 393,000 square feet that were formerly occupied by Qualcomm and which now stand completely vacant. There are also two retail buildings totaling about 42,000 square feet, which are 97 percent leased to a childcare facility and a handful of restaurants and cafes.
Completed in 2001, Skyport Plaza is designed with center-core floor plates of about 25,000 square feet that provide natural light and window-line exposure throughout each floor. The buildings are certified LEED Gold.
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Hudson Pacific CEO Victor Coleman said in prepared remarks that the sale of Skyport Plaza adds liquidity and provides the company with greater financial flexibility to fund leasing at its other properties.
Other office deals in greater San Jose
San Jose is an active investment market. In October, KBS Real Estate Investment Trust III sold The Almaden, a three-building, 416,126-square-foot office campus in San Jose to SFF Realty Partners. The transaction was San Jose’s largest multitenant office sale since the pandemic began.
In September, Spear Street Capital acquired 400 Castro St., a 138,000-square-foot office building in Mountain View, Calif., for $121.5 million. Tishman Speyer, which developed the building in 2002 and leased the office space in its entirety to law firm Fenwick & West, was the seller.
That same month, a joint venture of TMG Partners, Grove Real Estate Partners and an affiliate of Lone Star Real Estate Fund VII acquired a 2.2 million-square-foot portfolio of R&D assets in Silicon Valley. Washington Holdings sold the collection.
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