South Bay Development has picked up a seven-building office campus in Santa Clara for $51 million — nearly $100 million less than it traded for four years ago.
An affiliate of the Los Gatos-based investor bought The Quad at Tasman at 2962, 3032, 3052 and 3062 Bunker Hill Lane and 3001, 3003 and 3005 Tasman Drive, the San Jose Mercury News reported. The seller was TMG Partners, based in San Francisco.
The 410,100-square-foot office campus is bounded by Tasman Drive, Patrick Henry Drive, Bunker Hill Lane and Old Ironsides Drive, a few blocks west of Levi’s Stadium.
The deal works out to $124 per square foot, resetting the value of South Bay offices.
In 2020, TMG Partners bought the campus for $152 million, or $371 per square foot.
The campus was once the headquarters for the failed Silicon Valley Bank, which imploded in March last year after a run on its assets. At one time, it occupied half the complex.
Tenants at The Quad at Tasman include GoDaddy, Perspecta and Knowles. Occupancy figures were not disclosed.
The block-size campus surrounded by parking lots is in walking distance of a VTA rail line and includes a 4,000-square-foot fitness center, cafe, bocce field and 28 EV charging stations, according to its website.
South Bay Development, founded in 1978, has acquired 35 million square feet of commercial properties and hundreds of acres of land, according to its website.
TMG Partners this year struck some real estate shoals.
In July, the firm run by Michael Covarrubias in a joint venture with Goldman Sachs surrendered a five-building, 446,000-square-foot campus at 350-380 Ellis Street in Mountain View to lender KKR Real Estate Finance Trust, according to The Real Deal. Goldman and TMG relinquished ownership with $293 million of unpaid debt remaining.
In February, Alexandria Real Estate Equities announced it wanted to split the sheets with TMG Partners on their 775,000-square-foot office project in San Francisco’s South of Market.
The Pasadena-based real estate investment trust asked a court to find its development management agreement with TMG “has no continuing force or effect” — legal speak for kaput at 88 Bluxome Street.
— Dana Bartholomew
Read more
Commercial
San Francisco
Goldman and TMG surrender Silicon Valley office campus to KKR
Commercial
San Francisco
Alexandria wants to boot TMG from office project in SF’s SoMa
Commercial
San Francisco
Kerasotes ShowPlace darkens movie screens in Santa Clara and Mountain View