Silicon Valley Multifamily Group brokers sale of 16-unit medical office property in San Jose
March 22, 2016
LOS GATOS, Calif. – Silicon Valley Multifamily Group announced that it facilitated the Q4 2015 sale of a 16-unit medical office property in a prime redevelopment zone in the city of San Jose, Calif.
Silicon Valley Multifamily Group (SVMG) marketed the asset on behalf of a local owner at their request of a discreet sale at high market value. SVMG procured the buyer through its extensive database of contacts, solidifying a deal with a local investor, Holmes Business LLC of Fremont, Calif. for $315.68 per square-foot, totaling $4.9M at a 3.6% cap rate.
Built in 1959, this asset was identified by SVMG as an ideal redevelopment property. SVMG facilitated direct marketing, including thousands of mailers and hundreds of phone calls, to a targeted audience of area investors and developers. These efforts procured the buyer within SVMG’s extensive database of contacts.
The property is situated within the high-traffic Stevens Creek Boulevard / West San Carlos Transportation Oriented Corridor—a prime San Jose location where many existing properties have already been redeveloped. The city is solidifying plans to update the zoning in this area from Urban Residential to what will be Urban Village—a plan under the Envision San Jose General Plan 2040. This designation encourages mixed-use, higher density housing and more intense non-residential housing to support the city’s goals and strategies for serving a rapidly growing population.
Michael Shields, CCIM and Managing Director for Silicon Valley Multifamily Group, represented both the buyer and seller of the property. “This area is drastically changing the face, commerce, look and feel of San Jose, with such an aggressive redevelopment plan,” says Shields. “The highest and best use of the buildings is no longer just medical office, but a combination of commercial office or retail and residential. Seeing these older buildings being transformed into a modern, mixed-use downtown area is very exciting, and one certainly gets that San Jose is moving into the 21st century. This is a great opportunity for the city to realize its potential.”
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