SAN JOSE — A big office building in north San Jose has been bought for more than $60 million in a deal that represents a rarity in a fading Bay Area commercial real estate market: The property was sold at a profit.
Newport Beach-based Klein Investments also obtained a $50 million loan from Northern Trust Co. to help finance the purchase.The $63.6 million purchase was above the current assessed value as calculated by Santa Clara County officials and what the sellers paid in 2021 for the office building, which totals 146,200 square feet.
Throughout the Bay Area, office building values have nosedived. This means the rising value for the 3011 North First Street property’s upswing contrasts starkly with the region’s dismal trends. Property values have impacts that go well beyond the effects on the owner of a building or plot of land. Real estate values also are used to determine the property tax that can be levied on a parcel.