CBRE arranges $35.3 million sale of 5500-5550 Hellyer Avenue in South San Jose, CA
27 6 2018
CBRE Capital Markets’ team in the Bay Area has arranged the sale of a 196,534 NNN leased multi-tenant R&D/manufacturing building in South San Jose, CA. CBRE’s Scott Prosser, Joe Moriarty and Jack DePuy represented the seller, DivcoWest Silicon Valley Investments, in the $35.3 million sale to Willyo Properties.
“With a new 10-year lease and two other tenants having been in the building since 2008, this opportunity provides excellent stable occupancy with committed tenants,” said Scott Prosser, Executive Vice President, CBRE.
5500-5550 Hellyer is a high-image partial two-story building with a mixture of open office, lab and manufacturing space. Built in 2000, the building is 100 percent leased to three tenants, including. The property is located just one mile north of the Highway 101/Highway 85 intersection, 1.6 miles from the Blossom Hill Caltrain station and a little over two miles from the Cottle Road VTA Light Rail station, offering ease of access throughout Silicon Valley. Additionally, 5500-5550 Hellyer Avenue is in proximity to several new residential developments across Highway 101 at the Cottle Transit Village, and less than two miles from the Village Oaks Shopping Center with over 20 retail and dining options including Panera Bread, Safeway, Target and FedEx Office.
South San Jose continues to attract tenants seeking alternatives from Northern submarkets due to the demolition of R&D buildings for new development and record-high lease rates. As a result, companies have leased or purchased over one million square feet of space over the last 24 months, limiting supply for R&D space in South San Jose. This sale, along with the recent closings on Hellyer and two portfolios on nearby Optical Court, are strong indications that the appetite for properties in South San Jose will continue for institutional investors through 2018.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.