District 237, formerly known as Corporate Technology Centre, is a newly renovated Class A office park comprised of five buildings and offering a total of 415,000 square feet of rentable space. Each property in the office campus, 350, 300, 250, 200 Holger Way and 100 Headquarters Drive offers full frontal views of Highway 237. KBS began exterior renovations at the office park in June of 2018, and the project was fully completed in March of 2019. The new renovations allow for individually dedicated outdoor space, dependent on each tenant’s needs.
“When Ericsson vacated the project late last year, it allowed us to renovate and rebrand the project to better attract today’s technology companies,” said Rodney Richerson, western regional president for KBS. “With building availabilities ranging in size from 44,000 square feet, 77,000 square feet and 98,000 square feet, we’ve seen strong interest from a wide range of tenants.”
Located in Silicon Valley, District 237 is in close proximity to San Jose’s Mineta International Airport, a new BART station located in Milpitas opening in 2019, several nearby restaurants and retail outlets located within the @First Center a block away. The property’s location is attractive to a wide range of technology-based users. The office park is also easily accessible from a variety of lodging options including the Courtyard by Marriott San Jose and the Hyatt House San Jose.
“We are eager to welcome CDK Global as one of the first new tenants at the new District 237,” said Brent Carroll, senior vice president for KBS and asset manager for the property. “We hope the surrounding technology-focused area of Silicon Valley will continue to inspire and enable CDK Global to grow.”
According to Cushman & Wakefield’s Q4 office report, 2018 was one of the strongest years for overall leasing activity in Silicon Valley. With an increase of 3.2% year-over-year growth, San Jose demonstrated the highest percentage increase in the entire Bay Area. The tech sector was and continues to be a strong contributor to job growth in the region. This activity is expected to continue into 2019 with increased tenant demand in the area.
Chris Shepherd and Todd Husak of CBRE represented CDK Global and Erik Hallgrimson, Steve Horton and Jeff Cushman of Cushman & Wakefield represented KBS in this transaction.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended including statements relating to KBS REIT II’s ability to invest in and manage a diverse portfolio, and the performance of District 237 and of the San Jose real estate market. These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS REIT II’s and/or San Jose’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.