New Office and R&D Complex in San Jose Sells for $47.8M

2755 and 2777 Orchard Parkway

Orchard Corporate Center, a newly constructed and fully
leased 101,374-square-foot office and R&D campus in North San Jose,
has changed hands.

Los Gatos-based developer South Bay Development Co. sold the
Class A complex to a private investor, according to Cushman &
Wakefield, which advised the sale. The property sold for $47.8
million, the Mercury News reported, citing property
records, and the buyer was an entity affiliated with San Francisco
Prosperity, a firm headed by Burlingame-based Michael Tzu-Wen Wang
and Victor Lo.

Orchard Corporate Center includes two office and R&D
buildings on 5.31 acres at 2755 and
2777 Orchard Parkway.

Both buildings are 100 percent leased, the Cushman & Wakefield
noted. Last year, telecommunications equipment provider
Calix moved its headquarters and about 150 employees
into the 65,000-square-foot office building at 2777 Orchard
Parkway. Semiconductor company MegaChips is the tenant in the other
building. 

In recent years, North San Jose has drawn renewed interest from developers with big
ambitions
, as well as large companies looking for space to
build new corporate campuses. The area has long been home to PayPal
Holdings and Cisco Systems. Now, Hewlett Packard Enterprise Co. is
in the processing of moving its headquarters
from Palo Alto to 6280 America Center Drive in North San Jose.
Apple Inc. and Google have also purchased large sites in the city’s
north side, though how they’ll use the space remains
unclear. 

“Orchard Corporate Center is a strong-performing, high
quality asset fully leased to two long-term tech tenants and is
surrounded by some of the world’s biggest and most influential
technology companies,” Cushman & Wakefield Managing Director Eric
Fox said in a statement announcing the deal. “The property
represents the first new construction project
on Orchard Parkway in 17 years, while major renovations
have been completed on nearly every building situated
on Orchard Parkway between North First Street and Trimble
Road, substantially upgrading the overall quality and value of the
neighborhood.”

Fox, along with Adam Lasoff, Seth Siegel, Steve Hermann, and
Ryan Venezia of Cushman & Wakefield’s Northern California Capital
Markets Group, advised the seller in the deal. Nick Lazzarini and
Kalil Jenab of Cushman & Wakefield’s Silicon Valley offices
assisted and negotiated the leases with the current tenants,
according to the brokerage.

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