A big California developer just bought a high-profile, Apple-leased building in San Jose.
The Silicon Valley site, dubbed the Triangle Building, was bought by an affiliate of LBA Realty, Mercury News reported. LBA reportedly paid $76.5 million for the property.
Apple, which recently purchased the main campus it leased in nearby Cupertino, is the primary occupant of the 30-year-old building, located at 5300 Stevens Creek Boulevard.
The triangle building, which rises six stories and totals more than 85,000 square feet, is located right next to the interchange of US 280 and Lawrence Expressway. The structure was built in 1981 but underwent some renovations once Apple moved in as a tenant, Mercury News also reported.
Apple recently acquired four separate properties in Cupertino that it had already been renting, for $450 million — one of the largest commercial property sales in Silicon Valley by dollar amount so far this year. Additionally, Apple agreed to lease almost 700,000 square feet of office space in Sunnyvale — the largest office lease signed in Silicon Valley in 2021.
The latest deal is reflective of the draw Silicon Valley continues to hold for investors. EQT Exeter recently paid $192 million for a six-building office and research campus in North San Jose. The lot sat vacant for several years even after an extensive renovation that was completed in 2018. Additionally, Grosvenor Americas purchased a 218,600-square-foot tech campus consisting of three buildings in North San Jose for more than $108 million in cash.
Nearby, in Milpitas, Amazon acquired the 395,335-square-foot, four-building office and research campus — Metro Corporate Center — for $123 million.
The sellers of the Triangle Building, an entity under Stockbridge Capital Group made a sizable profit off the sale. Stockbridge paid $41.75 million for the property in 2013, netting a profit of just under $35 million. The property’s assessed value, as of June 2021, was $47.5 million.
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[MercuryNews] — Victoria Pruitt