BGO Buys San Jose Office Complex for $164 Million

A north San Jose office campus just changed hands for less than its previous sale price.

An affiliate of BGO acquired the seven-building Rio Tech Office Park for $164.3 million, the Silicon Valley Business Journal reported. The seller, an affiliate of Seattle-based Washington Holdings, purchased the 375,000-square-foot campus for nearly $170 million in 2021.

The deal includes five one-story buildings and two two-story structures along Rio Robles near the Guadalupe River. The property is fully leased property and counts Honda Research Institute, F5 Networks and Frore Systems among its tenants.

Rio Tech Office Park’s tenant roster of largely hardware and research and development users is slated to dictate BGO’s next steps with the property. The firm plans to continue developing the campus with an eye toward companies tied to hardware innovation.

“BGO acquired the site as part of our strategy to capitalize on the momentum for real estate that houses hardware related research, development and manufacturing activities,” BGO Managing Director Dara Friedman told the Business Journal. “Innovation in the hardware technology space has expanded, and the Bay Area has the history and human capital to continue to grow in this sector.”

Washington Holdings has been signaling a potential pullback from the region, according to the Business Journal. In March, the Registry reported that the firm was exploring an exit from Silicon Valley, where it controls roughly 2.5 million square feet across office, research and development, and retail properties. Its local portfolio includes campuses like the 16-building Mission Park in Santa Clara and the 14-building Tasman Tech center in Milpitas. The company reportedly has about 90 percent occupancy across its Silicon Valley holdings.

Rio Tech Office Park joins another north San Jose office campus to come under new ownership in recent months. In December, Kayne Anderson purchased the seven-building, 95,000-square-foot Pactrust Business Center South complex from Pacific Realty Associates for $30 million.

— Chris Malone Méndez