NEW YORK--(BUSINESS WIRE)--JOSS Realty, a commercial real estate private equity investor focused on core-plus and value-add office properties in gateway markets in the United States, today announced the purchase of Creekside @ 17 (the “Property”), a single tenant, 177,815 square foot Class A office property located in Silicon Valley, in the Campbell, CA submarket. JOSS partnered on the purchase with Qualitas, a leading Australian real estate private equity firm. The Property is fully-leased for the next 11 years to 8x8, Inc., a leader in integrated cloud communications.
The Property is newly constructed and features an 8-story parking structure, a subterranean direct-access garage, outdoor collaboration areas, and a fitness center with locker rooms. The best-in-class asset sits prominently at the intersection of Highway 17 and Hamilton Avenue, with immediate access to mass transit via the VTA Hamilton light rail stop. The light rail provides transport to Downtown San Jose and Caltrain at Diridon Station within 10 minutes. Furthermore, the Property is just a short walking distance to the Pruneyard, a 225,000 square foot open-air shopping center, Hamilton Shopping Center, and Whole Foods. Downtown Campbell, which has undergone a significant revitalization over the past few years, is home to over 100 shops and restaurants and a 3-minute drive from the Property.
“In an uncertain market, we continue to believe in the strength of American ingenuity represented by Silicon Valley,” said Larry Botel, founding partner of JOSS Realty. “Based on this confidence, we purchased Creekside @ 17, which is designed to meet the needs of the companies of tomorrow. We are proud to have the building serve as the corporate headquarters for 8x8, which has been based in Silicon Valley since its founding over 30 years ago.”
The Property will benefit from Silicon Valley’s strong tenant mix as the area is one of the world’s leading and most diverse centers for innovation. Some of the world’s largest and most powerful companies, such as Alphabet (Google), Apple, Netflix, Roku, Cisco, and Adobe call Silicon Valley their home.
Jeffrey Hornstein, Chief Investment Officer of JOSS, notes, “Given the extreme high barriers-to-entry in Silicon Valley, we quickly gained comfort with the supply/demand dynamics of the market and were attracted to the opportunity to acquire a newly constructed office asset with structured parking at a discount to replacement cost. With vacancy rates now sitting in the low single digits and upward momentum in rent growth, JOSS is making an educated bet on the future sustainability of these trends.”
JOSS purchased the property from The Carlyle Group and South Bay Development. The transaction was arranged by the Northern California Capital Markets team of Newmark Knight Frank.
About JOSS Realty Partners
JOSS Realty Partners is a real estate investment management firm focused on mid-sized, institutional quality, commercial office properties located in the major markets/submarkets on the East and West coasts of the United States. JOSS has acquired 25 properties totaling 3.4 million square feet with a value of $1.2 billion since its founding in 2005.