March 7, 2019 – Cushman & Wakefield announced today the firm advised PSAI Realty Partners in the disposition of 2125 O’Nel, a 108,446-square-foot office/R&D building in North San Jose, California. The buyer was Embarcadero Capital Partners, a San Francisco Peninsula-based private real estate investment, management, and development firm. The transaction closed in December 2018.
Cushman & Wakefield’s Northern California Capital Markets group consisting of Eric Fox, Steve Hermann, Adam Lasoff, Seth Siegel, and Ryan Venezia represented the seller in the transaction. Erik Hallgrimson of the firm’s San Jose office along with Craig Fordyce of Colliers International provided local market advisory.
“2125 O’Nel is a highly functional institutional grade property in the heart of Silicon Valley with exceptional Highway 101 visibility and offering the buyer significant near-term upside,” said Fox, Executive Managing Director. “At the time of sale, the building was 100% leased to a single tenant having just under a year of term remaining, although they have signed a lease at another property in order to accommodate expansion. The near-term lease expiration provides the buyer with a rare value-add opportunity to reposition the asset along with the benefit of having some secure in-place cash ﬂow.”
The building was originally developed in 1984 but underwent significant renovations in 2012. In its current condition, the two-story building is well conﬁgured for any technology user with a need to house multiple functions under one roof.
2125 O’Nel is situated on 5.21 acres and comprises part of the Bayshore Centre, a two-building complex located within the North First Street corridor in Silicon Valley’s Golden Triangle, home to many of the region’s most prestigious technology companies. The property’s centralized location provides easy access to major highways and expressways, Mineta San Jose International Airport, and a VTA light rail station. There are also multiple high-density residential developments and retail amenities near the project.
Fox noted, “This area provides a robust infrastructure and is geared for growth.”