Peninsula Land & Capital Buys San Jose Offices

Peninsula Land & Capital is adding to its Bay Area office holdings with a discounted property in San Jose.

The Palo Alto-based firm, acting through an affiliate, purchased 2001 and 2005 Gateway Place in San Jose for $25 million, Mercury News reported, citing Santa Clara County documents. Los Angeles-based Hudson Pacific Properties sold the 152,300-square-foot complex next to San Jose Mineta International Airport. The sale price was 45.2 percent below the property’s $45.6 million assessed value in January, according to Mercury News.

The buildings are part of San Jose’s larger Gateway Place campus that totals 609,000 square feet. Peninsula Land & Capital’s deal only includes the 2001 and 2005 Gateway Place buildings.

Peninsula Land & Capital has been on the prowl for commercial properties in the Bay Area at cheaper prices. In May, the firm bought an office building in Campbell for $24.6 million as part of its bargain-basement buying spree in the region.

The latest purchase in San Jose “aligns perfectly with [Peninsula’s] ongoing focus on high-quality office and research and development properties in core Bay Area markets,” company founder and CEO Roger Fields said of the deal, per Mercury News.

Offices in San Jose have been trading at a rapid clip so far this year.

Last month, a group of investors acquired the 58,000-square-foot office building at 110 Baytech Drive in north San Jose for $13.5 million. Paceline Investors also plunked down $33 million last month for offices at 350 East Plumeria Drive.

In May, electronics manufacturer Rocket EMS bought a research and office building at 5729 Fontanoso Way for $18.8 million. A month earlier, an affiliate of BGO purchased the seven-building Rio Tech Office Park for $164.3 million, representing a slight discount from the $170 million that seller Washington Holdings paid in 2021. Also in April, Paceline Investors bought the 92,900-square-foot office and research building at 2581 Junction Avenue for $12.2 million, marking a 61.9 percent haircut from its 2018 sale price of $32 million.

— Chris Malone Méndez