Santa Clara Office Complex Bought by Rubicon Point

An office complex sale in the South Bay serves as the latest evidence of the Bay Area office market’s value tumble after a post-pandemic peak.

Rubicon Point Partners, acting through an affiliate, acquired four office buildings in Santa Clara for $87.2 million, Mercury News reported, citing documents filed last week with the Santa Clara County Recorder’s office. The structures are located at 3003 Bunker Hill Lane and 5303, 5353 and 5403 Betsy Ross Drive. In total, the complex spans 201,100 square feet.

At that sales price, Rubicon Point Partners purchased the four buildings for 15.7 percent less than their assessed value of $103.4 million. TG USA Development, working through two affiliates, was the seller, while CBRE served as an adviser in the transaction. Rubicon Point Partners made the acquisition using $62.5 million in financing from BMO Bank, according to documents cited by Mercury News.

Medical device manufacturer Shockwave Medical is the sole tenant at the Santa Clara campus. Rubicon Point’s acquisition marks “the beginning of a billion-dollar investment strategy” that Rubicon Point “plan[s] to deploy over the coming few years throughout the region,” the firm’s co-founder Ani Vartanian told Mercury News.

San Francisco-based Rubicon Point has invested in office and multifamily properties across the Bay Area, though it has been in retreat in Silicon Valley in recent years. The company’s website lists office properties such as 111 North Market Street in San Jose, 209-223 Castro Street and 274 Castro Street in Mountain View, 10200 South De Anza Boulevard in Cupertino and 1870 Embarcadero Road and 4151 Middlefield in Palo Alto; Rubicon Point notes it has exited those properties.

Elsewhere south of San Francisco, Rubicon Point currently owns a 68,706-square-foot office and lab facility at 999 Baker Way in San Mateo and 247,094 square feet of offices at 901 and 951 Mariners Island Boulevard in San Mateo, according to its website. — Chris Malone Méndez