SAN JOSE — Two older office towers in downtown San Jose have been scooped up by a veteran investment group in a fresh sign of robust interest in properties in the urban core of the Bay Area’s largest city.
111 Market Square, once known as Community Towers, has been bought by an affiliate of San Francisco-based Rubicon Point Partners, Santa Clara County public documents filed on May 2 show.
The deal is the latest indication that investors and developers continue to scout for opportunities in downtown San Jose amid efforts by tech titans Google and Adobe to create huge new office projects to accommodate a growing number of employees.
Originally developed in 1965, the two office buildings and their common areas have undergone multiple and extensive upgrades in recent years to create an ultra-modern feel for both towers, which are located at the corner of North Market and West Saint John streets.
This week’s deal — one of the largest property purchases in Santa Clara County so far in 2019 — shows that commercial real estate values have dramatically increased since Google began buying properties to develop a transit-oriented community of office buildings, homes, shops, restaurants and open spaces near the Diridon train station.
The Rubicon Point affiliates paid about $148.4 million for the two towers, the county property records filed on May 2 show. One building is at 111 W. Saint John St. and the other is at 111 N. Market St. Together, the two office towers total 321,000 square feet.
The sellers, Ridge Capital Partners and TPG Equity REIT, paid $64.8 million to buy the two office towers in 2016. In 2014, Swift Real Estate Partners bought the two office towers for $40 million.