SAN JOSE — A big San Jose business park has been grabbed by a well-heeled investment firm, a deal that shows nagging coronavirus-linked economic woes have yet to curb the appetite for Silicon Valley properties.
Little Orchard Center, located near the corner of Little Orchard Street and Stauffer Boulevard in San Jose has been bought for just under $96 million, according to documents filed on Sept. 10 at the Santa Clara County Recorder’s Office.
Denver-based Black Creek Group, acting through an affiliate, paid $95.75 million for the business and industrial park, which occupies about 15.8 acres, the public property records show.
The purchase was an all-cash deal, according to the property documents.
The business complex consists of four buildings that together total about 690,000 square feet, commercial property listing sites show.
The coronavirus has spawned economic uncertainties and health concerns casting doubts about how quickly tech companies might return to office buildings amid a flareup of the deadly bug’s delta variant.
Tech companies have allowed workers to operate remotely or through hybrid business models.
Some experts believe the demand for office space could cool off somewhat if tech companies shy away from in-person office work. This might make investors pickier about the office properties they buy.
As a result, sites where more work might need to be done in person, such as industrial and business centers, could capture heightened interest.
Little Orchard Center is the type of commercial property that could fit that bill for investors.
The buyer of the property, Black Creek Group, was bought in July by Los Angeles-based Ares Management. Black Creek by itself has $11.6 billion in assets under management. Ares has $239 billion in assets under management.
