Hellyer Ave. Industrial Site is Positioned for Attracting and Retaining Talent

The 160,000-square-foot advanced manufacturing and office campus located at 5300-5350 Hellyer Ave. in South San Jose recently sold to J&J Properties. Empire Square Group sold the property for $64.3 million.

Joe Moriarty, Scott Prosser and Jack DePuy with CBRE Capital Markets in San Jose brokered the sale.

Brad Zampa and Michael Walker with CBRE capital markets’ debt and structured finance group arranged $44 million in acquisition financing on behalf of J&J Properties. The 10-year fixed rate non-recourse loan was arranged through a multinational investment bank.

CAES (formerly Cobham) has occupied both buildings on the class-A campus since it was originally built in 1999 and invested significant capital into facility improvements.

“5300-5350 Hellyer Avenue has a long-term high-quality tenant in place that has demonstrated its commitment to the property. The site is also well positioned for attracting and retaining labor. It is surrounded by retail and residential development, and offers a coveted reverse commute compared to submarkets in the north,” said Zampa.

The property is two miles north of the intersection of Highway 101 and Highway 85. More than 3,000 residential units and 400,000 square feet has been recently completed in the immediate area.

“South San Jose has undergone a fundamental shift over the past several years. Nearly 2.5 million square feet of tenants and owners/occupiers have moved to South San Jose since 2017,” said Prosser. “Many of these migrating companies are relocating from northern Silicon Valley in pursuit of more options for high-quality space at economical rates.”