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Thursday, Jun 30, 2022

Bixby Buys San Jose Park for $29.5M, Sets Makeover

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Irvine-based Bixby Land Co. has added another Silicon Valley office complex slated for a major remodeling project to its portfolio.

The company, in a venture with Hartford, Conn.-based Cornerstone Real Estate Advisors, paid $29.5 million for Trimble Technology Park, a four-building, 234,123- square-foot property in North San Jose, near the city’s airport. Boston-based Rockpoint Group was the seller of the complex, which sold for about $126 per square foot.

The complex is set for a significant renovation. Bixby plans to spend another $23 million to upgrade the property to make it more appealing as a corporate campus for a large technology tenant.

Three of the four buildings at the complex currently are empty. Bixby said it will add 16,000 square feet of two-story office space, increasing the size of the complex to just over 250,000 square feet upon completion.

The San Jose renovation project is expected to start early next year and be completed by year-end.

The $52.5 million investment for Trimble Technology Park—when factoring in the planned upgrades—is nearly the same amount that Bixby paid this summer for South Bay Tower, a 291,711-square-foot office near Del Amo Fashion Center in Torrance. That was Bixby’s largest acquisition in almost five years.

The privately held real estate operator and investment manager has taken on several other redevelopment projects in Silicon Valley’s red-hot office market of late.

It bought and renovated a 127,000-square-foot property in Santa Clara that was recently leased to tech firm Infoblox for its headquarters. It also recently renovated another three-building office it owns in North San Jose, which is said to be receiving interest from several potential tenants.

Retail Sale

Newport Beach-based DMP Properties has made its third acquisition of the year, for a shopping center in Santa Clarita.

DMP, a family-owned and operated commercial real estate investment company, paid a little more than $12.5 million for Riverview Place, a 45,525-square-foot center located in Santa Clarita’s Newhall district.

The four-building center traded hands for about $275 per square foot.

The property, built in 2003, is anchored by a CVS/pharmacy. Other tenants include a Starbucks, Chase Bank and Panda Express.

The seller’s name wasn’t disclosed; the property was developed by Irvine-based Hopkins Real Estate Group.

The center “received a significant level of interest from a good-sized group of local and regional investors, with a majority coming from high-net-worth individuals or syndicators,” said Kyle Matthews, vice president of investments in the Encino office of Marcus & Millichap Real Estate Investment Services. Matthews brokered the deal.

DMP’s retail portfolio counts about 10 properties, with half of those in Orange County. It also owns mixed-use, automotive and office properties; earlier this year it paid $7.2 million for 250 Newport Center Drive, a three-story building in Design Plaza, adjacent to Fashion Island.

Storage Change

Extra Space Storage Inc., a real estate investment trust in Salt Lake City that owns and operates self-storage facilities, is taking over management of Irvine Company’s local self-storage portfolio.

The company said earlier this month it had entered into an agreement with Newport Beach-based Irvine Co. to assume management of eight self-storage assets.

The eight properties, all located in Irvine, total 732,000 square feet and bring in annual rents in excess of $15 per square foot, according to Extra Space, which counts a market value of about $3.5 billion.

Terms of the third-party management deal were not disclosed.

The properties included a trio of facilities along Warner Avenue, near The District at Tustin Legacy shopping center.

The properties, which were operating under the Mini U Storage name, have been rebranded and reflagged as Extra Space Storage properties.

Irvine Co. has previously offered tenants at its local apartment communities a few months of free storage at the facilities as an enticement for signing leases at its apartment complexes.

Easy Storage counts a wholly owned self-storage portfolio in California that runs about 5.5 million square feet. The company also manages an additional 3.4 million square feet of properties in the state, ac-cording to the company’s latest quarterly report.

Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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