Legacy Partners Drops Sobrato-Oracle-BEA Tower Deal

Rumor is that Legacy couldn’t secure the financing it needed to acquire the Sobrato/Oracle/BEA Tower in downtown San Jose and has dropped its acquisition plans for the 388,000 square foot tower located at 488 N Almaden Blvd in Downtown San Jose.

DivcoWest which was rumored to be in the running for the building previously is again being considered, though we’ve heard their price point is significantly less than Legacy’s $275 psf number. The building is being offered significantly below replacement cost and is in shell condition for the most part.

Though vacancy rates in downtown San Jose are nearly 20%, a savvy buyer might look at the stratification of the availability and realize that there exist very few chunks of Class A space north of 50,000 square feet in size. The building is a bit “off the beaten path” when it comes to the downtown core of Santa Clara/Market, etc., but it is in close proximity to the convention center, hotels, and has excellent visibility.

As we’ve mentioned previously, PriceWaterHouse Coopers is in the market for a big chunk of space. We’ve also heard that the San Jose office of Deloitte is also on the hunt for additional space. In a perfect world, a prospective buyer might line up one of those users for some space before biting off a vacant 388,000 square foot building. Nevertheless, a prospective buyer must also consider the advantage of having the city of San Jose’s willingness to put significant resources behind luring a prospective tenant downtown.

Similar Posts:

• Sobrato-Oracle Building at 488 N Almaden To Go Full Circle?
• Legacy Partners Buying Oracle/BEA/Sobrato Tower at 488 Almaden?
• Who is the Buyer of the Sobrato-BEA-Oracle Building at 488 N Almaden Blvd?
• Possibly Brilliant Timing for Buyer of Oracle/Sobrato Tower; PWC Possibly on the Hunt
• Oracle/BEA Tower On The Market

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