Dealmaker: CBRE Global Investors Acquires Two San Jose Office Buildings

A fund sponsored by CBRE Global Investors acquired two Class A office buildings in San Jose, Calif. for $95 million.

The buildings, collectively known as 237@First, each span six stories and include 368,702 rentable square feet.

237@First is LEED Gold Certified and includes 4353 North First Street, which was completed in 2016 and includes 181,042 square feet; and 4453 North First Street, which was completed in 2019 and includes 187,660 square feet. The office buildings feature 14’ to 16’ slab-to-slab heights, expansive window lines affording panoramic views and abundant light and flexible 32,800-square-foot column-free floor plates that can accommodate a de-densified floor plan. Tenant amenities include a fitness center with a yoga studio and several large outdoor collaboration areas.

The property is nearly 65% leased, with 131,000 square feet available for lease, which can accommodate single or multi-floor users.

“237@First is located within the North San Jose office submarket, which we believe is well-positioned to weather an economic downturn,” said Gary Jaye, Senior Managing Director and Head of Commercial Acquisitions for CBRE Global Investors. “The San Jose area benefits from a highly skilled new economy workforce, nearby world-class research universities and hospitals, and a concentration of some of the most valuable companies in the world. The specific location of 237@First, situated just off I-237, also affords many tenant employees a desirable reverse commute, with quick access the area’s major roadways.”

Robert Perry, Executive Managing Director and Portfolio Manager for CBRE Global Investors, said CBRE plans to upgrade underused common areas and enhance the property’s outdoor amenity offerings by adding more seating, installing an on-site food option and expanding Wi-Fi.

237@First is located along the heavily trafficked Interstate 237 corridor, providing exposure and regional access via direct connectivity to major highways and to the freeway. The location affords many tenants a reverse commute to the East Bay and Peninsula areas and is home to several major national and global corporations.

CBRE said the acquisition is part of the fund’s broader strategy to acquire and lease up properties in key office markets across the U.S.