NKF Capital Markets secured a $200 million loan to finance the acquisition of a three-building, 591,045-square-foot creative office campus in San Jose, which previously housed Brocade Communications. The buyer was Lane Partners, a Menlo Park-based development company. The Blackstone-backed mortgage was negotiated by Ramsey Daya and Chris Moritz of NKF’s San Francisco finance team.
Brocade decided to sell its offices at 110, 120 and 130 Holger Way–also known as HQ @first–after its merger with chipmaker Broadcom. Although Broadcom has announced plans to move its legal headquarters from Singapore to the U.S., the San Jose property was put on the market as part of the company’s cost-cutting efforts.
The campus fetched $225.5 million, distributed between the three office buildings ($78 million for 130 Holger Way, $75 million for 120 Holger Way, and $42.5 million for 110 Holger Way) and a 1,879-car parking space (sold for $30 million).
The LEED Gold-certified HQ @first was built in 2010, and is spread across 9.7 acres of land. The buildings feature highly-desirable amenities for tech companies, such as an outdoor barbeque, patio areas, a basketball court, a fitness center, a game room, and a 300-seat cafeteria.
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Ramsey Daya, vice chairman of NKF Capital Markets, highlighted the campus’ appeal to investors in the San Jose office market: “HQ @first is truly a trophy asset that is San Jose’s most walkable and amenitized campus. We see this project gaining even more momentum and value over the coming years as the Silicon Valley market continues its upward growth.”
The former Brocade headquarters is conveniently located near several VTA Light Rail stations, connecting passengers to Caltrain, AMTRAK and ACE Train. The campus also offers easy access to multiple restaurants, shops and hotels in the area.