Washington Holdings is selling more office properties in Silicon Valley as it pulls back from the region.
The Seattle-based firm sold four buildings at 1500-1800 Wyatt Drive in Santa Clara for $32.9 million, the Silicon Valley Business Journal reported. An affiliate of BKM Capital Partners purchased the buildings, part of the Mission Park office complex that altogether spans 567,676 square feet on roughly 40 acres.
The structures currently host tenants including Washington Holdings’ local offices and tech companies like WinWay Technology International and Aixtron.
BKM has been active in the Bay Area over the past year with the industrial real estate firm’s acquisition of a Pleasant Hill industrial park in November, a six-building industrial site in Fremont, and 16 industrial buildings in the East Bay the following month.
Washington Holdings has reportedly been exploring an exit from Silicon Valley for months, the Registry reported earlier this spring. The Seattle-based company controls approximately 2.5 million square feet of office, retail and research and development space in the region with about 90 percent occupancy rates across its Silicon Valley holdings. Washington Holdings is still the owner of other Mission Park buildings as well as the 14-building Tasman Tech center in Milpitas.
In April, Washington Holdings disposed of an office complex in north San Jose. An affiliate of BGO purchased the seven-building Rio Tech Office Park for $164.3 million. Washington Holdings took a loss on the property after picking up the 375,000-square-foot campus in 2021 for almost $170 million.
The Mission Park buildings aren’t the only office complex properties in Santa Clara to sell in the past month. Rubicon Point Partners spent $87.2 million for offices at 3003 Bunker Hill Lane and 5303, 5353 and 5403 Betsy Ross Drive spanning 201,100 square feet in total. Soon after that, Ellis Partners and Baupost Group acquired the Great America Commons office complex at 4555 and 4655 Great America Parkway in Santa Clara for $310 million — the most expensive office purchase in Silicon Valley so far this year.
Washington Holdings still owns the Marriott hotel property next to Mission Park, according to the Business Journal.
— Chris Malone Méndez
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