SAN JOSE — A big Bay Area 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 $100 million.
The buying group paid $149 million for buildings in San Jose and Milpitas, according to documents filed on May 1 with the Santa Clara County Recorder’s Office.
1001-1021 Cadillac Court, an office and industrial building in Milpitas. (Google Maps)
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, $57 million for a building at 591 North King Road that totals 213,600 square feet.
— San Jose, $17 million for a building at 1721 Rogers Avenue totaling 22,200 square feet.
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Real estate investment firm Blackstone, acting through three 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.