Legacy Partners Buying Oracle/BEA/Sobrato Tower at 488 Almaden?

July 25th, 2008

The Business Journal is reporting this morning that according to their sources, Legacy Partners is in fact that buyer of the Oracle/BEA/Sobrato tower located at 488 N Almaden Blvd in San Jose which Oracle (ORCL: 18.86 +13.07%) acquired as part of the BEA acquisition. The Business Journal is reporting the sale at “nearly” $100M at about $275 psf (the math is a bit off), but nonetheless that number is close to what we’ve speculated. BEA purchase the building for about $135M about sixteen months ago and had started some of its TI’s.

The Business Journal reports that it will take about $50 psf to get the building tenant ready, which might be slightly low given what has happened with commodities and materials prices lately. What is more important is that Legacy was able to solidify control of the market and prevent another player from entering the market with a low basis. We’ve written extensively on events surrounding this building, the importance for Legacy to buy the building, and our previous posts include more history about the building. We’ve also heard that Divco West was in the running for the building.

All the blog posts previously discussing 488 Almaden are:

Oracle/BEA Tower on the Market (May 20th, 2008)
Who is the Buyer of the Sobrato -BEA-Oracle Building at 488 N Almaden Blvd? (June 18, 2008)
Possibly Brilliant Timing for Buyer of Oracle/Sobrato Tower; PWC Possibly on the Hunt (July 24, 2008)

Legacy is taking a big gamble on Downtown San Jose, but based on our post from yesterday, their purchase of 488 N Almaden was in many ways crucial. It will be interesting to see if 488 N Almaden finally gets a name that will stick, perhaps PwC Tower.

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