Kayne Anderson is growing its Bay Area holdings with the purchase of an office park in north San Jose.
The Los Angeles-based firm, acting through an affiliate, bought the office campus at 780 Montague Expressway for $30 million, the Mercury News reported. An affiliate of Pacific Realty Associates sold the 7-acre property.
The business park, known as Pactrust Business Center South, totals 95,000 square feet of offices across seven buildings. Tenants at the site include software company Hawk Ridge Systems, laser makers Lighthouse Photonics and 3D-Micromac America, and medical technology manufacturers Cephasonics and EchoPixel.
Kayne Anderson’s purchase marks the latest property acquisition in the region for the alternative investment management firm. As part of its ongoing partnership with Newport Beach-based BKM Capital Partners, in July Kayne bought a 16-building industrial portfolio in the East Bay Area. That purchase from Blackstone Real Estate affiliate Link Logistics Real Estate totaled $120 million for three separate properties spanning 505,000 square feet in Concord and Heyward.
North San Jose in particular is emerging as an office hotspot for tech and artificial intelligence companies in the Bay Area. Earlier this month, an affiliate of Menlo Park Equities proposed turning an office and research building at 300 Holger Way into a 97,800-square-foot data center. The structure has been leased by Nvidia since late last year.
In October, a Goodman Group affiliate bought a site in north San Jose with plans for a data center. The firm bought the 46.8-acre plot at 350 and 370 West Trimble Road from an LBA Realty affiliate in a $200 million all-cash deal. LBA floated building a tech village with offices, shops, restaurants and a hotel there in 2019, changing course three years later with a proposal for an advanced manufacturing facility, though that project never got off the ground. It submitted a development permit to the city of San Jose earlier this year to build a 207,950-square-foot data center instead.