Skip to content
Learn How KBS is Creating Safe Work Environments
kbs logo
  • Investors
    • KBS Capital Markets Group
  • Properties
  • News & Insights
  • About Us
  • Contact

    Our Offices

    Corporate Headquarters

    800 Newport Center Drive, Suite 700
    Newport Beach, CA 92660

    (949) 417-6500

    info@kbs.com

    Washington DC Office

    3003 Washington Boulevard, Suite 950
    Arlington, VA 22201

    (202) 822-1230

    Facebook-f Twitter Linkedin-in Instagram
    Corporate Headquarters
    800 Newport Center Dr., Suite 700 Newport Beach, CA 92660
    info@kbs.com
    (949) 417-6500
    New York Office
    590 Madison Avenue, 26th Floor New York, NY 10022
    (212) 644-6662
    Washington, DC Office
    3003 Washington Boulevard, Suite 950, Arlington, VA 22201
    (202) 822-1230
    Contact Us
    KBS is an SEC-registered full-service investment adviser adept in various property and product types.
Learn How KBS is Creating Safe Work Environments
kbs logo
ArtboardCreated with Sketch.
Press Releases

KBS Sells 250 Holger Way at District 237, a 415,492 Square-Foot Office Complex in San Jose, California, for $38M

  • September 30, 2020
Press Releases

KBS Sells 250 Holger Way at District 237, a 415,492 Square-Foot Office Complex in San Jose, California, for $38M

  • September 30, 2020
The deal demonstrates continued interest in the office sector despite pandemic

SAN JOSE, CALIFORNIA (September 30, 2020) – KBS, one of the largest investors in premier commercial real estate in the nation, announced today that it has sold an additional building at District 237, a Class A, 415,492 square-foot office/R&D complex in San Jose, California.

250 Holger Way was owned by KBS Real Estate Investment Trust II. The 76,410 square-foot building was sold to San Francisco Bay Area Bailard for $38.25 million.

Earlier this year, KBS sold two buildings comprising 142,710 square-feet at District 237 – 100 Headquarters Drive and 200 Holger Way – to an independent real estate fund and asset management company for $95.2 million.

The sale of 250 Holger Way at District 237 represents ongoing interest in high-quality office/R&D properties located in the epicenter of key markets throughout the country, according to Gio Cordoves, regional president, western region, for KBS.

“KBS has a long history of identifying and acquiring assets positioned for strong performance in markets where tenants want to be located, and District 237 is clearly one of those assets,” says Cordoves. “The sale of three out of the eight buildings comprising more than 200,000 square feet at this property in less than four months in the midst of a global pandemic demonstrates investors’ confidence in this sector well into the future.”

District 237, formerly known as Corporate Technology Centre, is located in the North San Jose submarket of the Silicon Valley, a highly desirable area of Northern California among office users, particularly in the tech industry, according to Brent Carroll, asset manager for District 237 and senior vice president for KBS.

“San Jose enjoys tech spillover from the rest of Silicon Valley, including cities such as Palo Alto and Mountain View,” says Carroll. “Tech tenants who are drawn to Silicon Valley are finding more competitive rates in this submarket, and office investors are realizing that institutional-grade assets like the buildings at District 237 can add tremendous value to their portfolio. KBS recognized how well-located District 237 is in this submarket and the potential for powerful value creation at this property. The fact that the firm has achieved this goal is evidenced in this latest sales transaction.”

Built in 1999 and 2001, District 237 was constructed as eight one-, two-, and three-story buildings. In 2018, KBS sold three of the eight buildings. All of the buildings at this property feature excellent window lines and efficient floorplates, as well as superb visibility from over 3,000 feet of Highway 237 frontage, according to Carroll.

“The Highway 237 corridor benefits from positive new developments and emergence as the prime linkage point for companies drawing employees from either side of the San Francisco Bay,” says Carroll. “The location has evolved into one of the most desirable in Silicon Valley, and District 237 is well situated within that location.”

Carroll adds that the collection of buildings at District 237 ranged from 20,009 square feet to 101,194 square feet, with an average floorplate of nearly 31,500 square feet, which attracts larger, well-capitalized tenants with high credit quality.

“250 Holger Way is a natural fit for the portfolio, with a strong tenant base and located within a highly desirable and liquid submarket in the U.S.,” says James Pinkerton, senior vice president of Acquisitions & Portfolio Management at Bailard. “The Bailard team is continually looking to refresh and expand its portfolio with high-quality assets and is pleased to complete the acquisition of 250 Holger Way within District 237.”

KBS recently repositioned and rebranded District 237, which resulted in a combined total of 315,622 square feet in new leases with three global companies at the property.

“Rather than white boxing the five buildings, KBS took one building and completely built out the interior which included a more open layout, updated common areas, a new tenant lounge, fitness center and private outdoor amenity areas that we believed would drive new leasing activity by infusing new energy into the project,” Carroll notes.

The sale of 250 Holger Way at District 237 was brokered by the CBRE Northern California Capital Markets Team consisting of Joe Moriarty, Scott Prosser, Jack DePuy, Russell Ingrum, Brad Zampa and Mike Walker. The buyer represented themselves.

“Investors are consistently drawn to this highly appealing property in an extremely popular submarket of Northern California,” says Moriarty. “KBS’ pride of ownership comes through for investors as they continue to seek out properties like District 237 throughout the area.”

District 237 is located directly adjacent to @First retail center, which has attracted a rich mix of neighborhood amenities including Target, CVS Pharmacy, Fresh and Easy, Chipotle, Coffee Bean, Chick-fil-A, Panera, Chase Bank, Marriott Courtyard, Hotel Sierra and many others.

Attorneys Bruce Fischer and Howard Chu, and paralegal, Robyn Foianini, of global law firm Greenberg Traurig, LLP’s Orange County office represented KBS as legal counsel in the disposition

“We were very pleased to work with KBS in the disposition of 250 Holger Way during a pandemic which continues to show interest in high quality office assets,” said Fischer, Greenberg Traurig’s Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County Office, who led the Greenberg Traurig team.

District 237 is located at 100 Headquarters Drive and 200-350 Holger Way in San Jose, California. Please find a photo of 250 Holger Way at District 237 here.

Media Contact

Lexi Astfalk / Jenn Quader

Brower Group
(949) 438-6262
KBS@brower-group.com

Ginny Walker

Public Relations Manager for KBS
949-417-6535
gwalker@kbs.com

More Articles

Industry Trends

Underwriting the Perceived Instability of Short-Term Office Leases

  • February 16, 2021
The threat of shorter office lease terms has been looming over the commercial real estate industry for several years. Companies first braced for the potential impact of new standards from the International Accounting Standards Board (IASB) recognizing all leases on the balance sheet, which took effect in January 2019. Then, the office leasing world was hit with additional challenges from COVID-19 as many companies opted to work from home and re-evaluated the role of their physical office space.
Industry Trends Insights

Envisioning the Future of the Built Environment

  • January 29, 2021
Amidst the ongoing crisis, built environments are at the front lines of change and will play a huge role in creating a more resilient world going forward. Office architects are re-envisioning the future of the workplace—where and how we work. Unfortunately, there is no crystal ball to predict exactly what the new future-oriented office will look like, but what we do know is flexibility and adaptability will be key in resilient design.
Industry Trends

Why Texas is becoming a commercial real estate powerhouse

  • January 21, 2021
It looks like 2021 will be another big year for Texas, a year when a lot of major companies will make the jump and move to the Lone Star state. Just look at these transitions:
See All
Our Company
  • Investors
  • Properties
  • News & Insights
  • About KBS
Resources
  • Premier Office Magazine
Get in Touch
Facebook-f Twitter Linkedin-in Instagram
  • Careers

© 2023 KBS

  • Terms & Conditions
  • Privacy Policy
  • Home
Investors
  • KBS Capital Markets Group
  • Properties
  • News & Insights
  • About Us
Contact Us
  • Corporate Headquarters
  • New York Office
  • Washington, DC Office