Tivo deal produces surge of interest in North San Jose
Five office buildings tucked away in Alviso Village have been bought for $91.5 million
SAN JOSE >> Five office buildings — including the Tivo headquarters complex — near the Guadalupe River have been bought in a deal that appears to point to a surge of activity in north San Jose.
The five buildings, tucked away on the 2100 block of Gold Street in San Jose’s Alviso village, were purchased by SFF Realty Fund, an affiliate of San Francisco-based PSAI Realty Partners, a property investment firm.
SFF Realty Fund paid $91.5 million in cash on July 19 in a deal for a campus whose tenants include TiVo, a high-profile entertainment technology company, according to Santa Clara County property documents.
The sale was arranged through brokers Steven Golubchik, Grant Lammersen and Edmund Najera, all executives with NKF Capital Markets, a commercial realty brokerage that specializes in property purchases. CBRE, a commercial realty brokerage, is seeking tenants for spaces in the office complex, known as Gold Street Technology Center, which is located just north of State Route 237.
“The Alviso area of San Jose has had a stigma in the past for investors and tenants, but now it is getting a lot more interest and activity,” said Dave Sandlin, a senior vice president and principal executive with Colliers International, a commercial realty brokerage.
The seller of the 303,000-square-foot office complex was ECI Four Gold Street, an
affiliate of Belmont-based Embarcadero Capital Partners, county documents show.
A growing number of tech companies have demonstrated rising interest in sections of San Jose that are north of Highway 237.
In September 2017, Microsoft paid $73.2 million for 65 acres of farmland fronting on Highway 237 and the Coyote River's banks.
In January, Google paid $117.3 million for three huge industrial buildings that together total 563,000 square feet, and all are on Disk Drive.
“Google could be buying even more buildings in this area. That's the rumor,” Sandlin said.
In March, Hewlett Packard Enterprise disclosed plans to move its headquarters to the America Center campus, leasing 220,000 square feet at 6280 America Center Drive in San Jose.
It makes sense for investors and big tech companies to take a fresh look at the Alviso and north San Jose areas, experts said.
“This area is a good play,” Sandlin said. “We are seeing office vacancies declining, rents are going up. The area has been overlooked in the past. The Alviso area is getting more attractive.”