New York-based JER Partners and Menlo Park, California-based commercial real estate operator Lane Partners have purchased three office buildings with 294,000 square feet of office space in North San Jose, California. They are currently about one-third leased.
Before the latest purchase, JER had already amassed close to 1.5 million square feet of office space in 21 buildings in nearby Fremont thanks to its acquisitions of the Bayside Technology Park and Bayside Technology Park II over the past two years.
JER bought the both the Bayside Properties and the North San Jose Space from Sunnyvale, California-based Renco Properties.
“We plan on renovating the portfolio and aggressively working to lease the vacant space,” Cia Buckley, president of JER’s US funds business, said in a statement. “These are excellent assets in a very promising location and we believe this area will experience a significant increase in the demand for office space.”
In recent months, many Northern California real estate investors and developers have been cashing out by selling millions of square feet of office space, including older R&D facilities, as the region has rebounded.
Lane Partners was recently founded by Scott Smithers and specializes in the acquisition, repositioning, operation and disposition of office, R&D, and retail properties in Northern California.