SAN JOSE — A big South Bay portfolio of office, commercial and industrial buildings has been bought by a New York-based real estate investment group in a deal valued at well over $200 million.
The buying group paid $222 million for buildings in San Jose, Milpitas and Santa Clara, according to documents filed on May 1 and May 2 with the Santa Clara County Recorder’s Office.
The purchase of the buildings suggests that investors still hunger for Bay Area properties despite the sour business prospects for many commercial real estate buildings in the region.
New York City-based DRA Advisors, an investment firm, is listed as the managing member of the buying group for the buildings, county real estate and state government business records show.
Here are the locations of the buildings and how much the DRA Advisors-managed buying group paid for each site, according to the county public documents:
— Milpitas, $75 million to buy four buildings located at 901, 1001, 1123 and 1151 Cadillac Court. Together, the four buildings total 301,600 square feet.
— San Jose, $74 million for buildings at two sites in the Bay Area’s largest city. The San Jose deals include $57 million for a building at 591 North King Road that totals 213,600 square feet and $17 million for a building at 1721 Rogers Ave. totaling 22,200 square feet.
— Santa Clara, $73 million for four buildings on Leonard Court. The addresses include 3401, 3501 and 3521 Leonard Court.
DRA officially completed the purchases of the San Jose and Milpitas buildings on May 1 and finished the purchase of the Santa Clara buildings on May 2, several separate property deeds show.
Real estate investment firm Blackstone, acting through four different affiliates, sold the buildings to the DRA-managed group, county and state documents show.
In 2022, Blackstone obtained the South Bay buildings, and many others around the country, through its $7.6 billion purchase of PS Business Parks.
The just-bought buildings are a diverse mix of office, commercial and industrial spaces. The property spaces are occupied by an array of tenants, according to Google Maps.
DRA’s purchase of the South Bay buildings is a reminder that commercial real estate in Silicon Valley can still be an attractive investment for buyers despite the brutal market conditions for the battered sector.