Sale of San Jose office campus closes

SAN FRANCISCO – Aug. 26, 2021 – JLL Capital Markets announced today that it has completed the sale and financing of Phase I of America Center, which includes two six-story Class A office buildings totaling 427,600 square feet and a development parcel in North San Jose, California.

JLL represented the seller, USAA Real Estate, and procured the buyer, Shorenstein Properties. Additionally, JLL placed the acquisition financing on behalf of the new owner.

Completed in 2009, Phase I of America Center is LEED Gold certified and 98 percent leased with a weighted average lease term of 2.9 years. On-site amenities include jogging and biking trails, full-service cafeterias, a fitness center, a sports park and expansive outdoor gathering space. The offering also included an entitled development site for a new six-story, 200,000-square-foot office building, providing future growth opportunity for existing tenants.

America Center Phase I is located within the five-building America Center complex at 6001 and 6201 America Center Dr. on the border of Santa Clara and North San Jose. The property’s location along Highway 237 provides immediate connectivity to Interstates 880 and 680 and U.S. Highway 101 for easy commuting from broader Silicon Valley, East Bay and Oakland. With picturesque views of the San Francisco Bay, the surrounding area is highly amenitized with retail, hotel and entertainment options, including @First Retail Center, Levi’s Stadium, the adjacent Aloft Hotel and the future Related Santa Clara project.

According to JLL Research, Silicon Valley has experienced 47 percent rent growth since 2013, with 17 percent rent growth over the last 24 months. The market has also demonstrated positive net absorption six out of the last eight quarters with 4.8 million square feet of current tenant demand.

The JLL Capital Markets team representing the seller was led by Senior Managing Directors Will Connors, Michael Leggett and Rob Hielscher, Senior Director Daniel Renz and Director Michael Manas.

The JLL debt placement team handling the acquisition financing efforts was led by Senior Managing Director Bruce Ganong, Managing Director Geoff Goldstein and Analysts Spencer Bergthold and Auden Menke.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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