DivcoWest Paying $161M for Downtown San Jose Tower

To learn more about current  Silicon Valley commercial real estate activities, attend Connect Silicon Valley on Feb. 9 at the Glass House in San Jose.

DivcoWest is under contract to buy one of San Jose’s most prominent office buildings for $161 million. The property, located at 50 W. San Fernando St., totals 335,584 square feet and is being sold by CBRE Global Investors, who purchased the building three years ago for $93 million.

Eastdil Secured’s San Jose office is brokering the transaction. The trophy office building, which was built in 1989, has only traded twice since it was built in 1989. It is 97-percent leased, and includes Merrill Lynch and Accenture as its tenants. The top floor is occupied by the private Capital Club, which is a popular event space.

Mark Ritchie, an executive at Ritchie Commercial, has leased the building for more than a decade, and said that it is on par with the best performing buildings in San Francisco.