CBRE Arranged $41.5 Million Sale of Valley Research Center in San Jose, Calif.

CBRE arranged the sale for Valley Research Center, a 129,024 sq. ft. R&D campus in North San Jose, California. The property was purchased for $41.5 million by WF Batton Management Company. Joe Moriarty, Scott Prosser and Jack DePuy of CBRE’s Capital Markets team represented the seller.

Valley Research Center is comprised of two 64,512 sq. ft. buildings, which were renovated in the last two years with a new lobby, collaborative work areas, fitness center and outdoor recreational areas. 2590 Orchard Parkway is fully leased to Harmonic Inc. and 2580 Orchard Parkway is 26% leased to FIT Electronics (Foxconn).

“The Silicon Valley R&D market has remained resilient. Valley Research Center’s state-of-the-art improvements and location in the Golden Triangle, amongst high-cap technology companies, provide a huge upside opportunity for those looking for access to world-class talent and innovation,” said Joe Moriarty, Executive Vice President of CBRE.

The R&D sector in Silicon Valley recorded 1.8 million sq. ft. in leasing activity in the third quarter this year, according to CBRE. North San Jose had the highest year-to-date net absorption in Silicon Valley as tenants seek proximity to well-known technology and R&D companies. Quality buildings containing lab space continue to garner interest as average asking rates are at $2.91 per sq. ft. on a monthly, NNN basis.