488 Almaden Blvd. office tower in downtown San Jose. A buying group that includes a veteran local real estate firm and an investment fund with a global reach has bought a landmark office tower in downtown San Jose from tech titan Oracle America.
SAN JOSE — A buying group that includes a veteran local real estate firm and an investment fund with a global reach has bought a landmark office tower in downtown San Jose from tech titan Oracle America.
The new owners of 488 Almaden Blvd. paid $155 million for the downtown San Jose property, which consists of a prominent office highrise and its adjacent parking garage, according to property records filed in Santa Clara County on May 21.
The buying entity is a group that includes Menlo Park-based Lane Partners and Newport Beach-based PIMCO, according to county documents and state business records. PIMCO is a major investment fund advisor and actively manages assets valued at $2.16 trillion on behalf of an array of organizations, companies and individuals. PIMCO itself is owned by Germany-based Allianz, a huge financial services firm.
“We view downtown San Jose as a premier market in Silicon Valley,” said Drew Haydel, a partner with Lane Partners.
The office tower totals 379,000 square feet and is 17 stories high, according to a post by a property manager for the highrise.
Oracle sold the building as part of the tech behemoth’s strategy to downsize its office footprint in the Bay Area in the wake of the company’s decision to shift its headquarters to Texas and exit Redwood City.
The buyers received a significant loan to finance the purchase from a group called Parlex 15 Finco, which is controlled by a mortgage arm of Blackstone, a New York City-based private equity firm.
The mortgage totaled $148.2 million, according to documents filed with county officials.
The parcel where the office tower is situated was purchased for $153.7 million, while the parking structure changed hands for $1.3 million, county property records show.
“This unique asset … will be an ideal landing spot for an emerging or established company seeking an identity in a downtown environment,” Haydel said in comments emailed to this news organization.
Oracle had already vacated the building ahead of the transaction. PwC, a major accounting firm, is the only tenant currently inside the building. Oracle had gained ownership of the tower when it bought BEA Systems in 2008.
“We have great plans for the building and we are excited to showcase them to the community,” Haydel said.
