The Sobrato Organization sells data center in San Jose for $86M 

Atlanta-based Invesco buys Equinix-occupied property for $834 psf

Invesco Advisers' Scott Dennis and 1735 Lundy Avenue in San Jose
Invesco Advisers' Scott Dennis and 1735 Lundy Avenue in San Jose (Google Maps, Invesco Advisors)

The Sobrato Organization has sold a 103,400-square-foot data center in northeast San Jose for $86.25 million.

The Mountain View-based developer sold the single-story building at 1735 Lundy Avenue to Atlanta-based Invesco Advisors, the Silicon Valley Business Journal reported.

An Invesco affiliate paid $834 per square foot for the home of Equinix’s SV3 data center.

Affiliates of Sobrato had owned the 6.75-acre property since the mid-1980s, according to the Business Journal.  The Mercury News reported Sobrato bought the property in 2010 for an undisclosed price.

Equinix purchased the data center from AboveNet Communications in 2004 for $900,000. It also assumed AboveNet’s lease that began in 2000 and ran through 2020, with extension options.

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The building had an assessed value of $21 million in July 2022, according to the Mercury News, citing Santa Clara County Assessor’s records.

Data centers have become a popular commercial investment in an uncertain economy and at a time of rising Bay Area office vacancies in the era of remote work.

The Lundy Avenue deal came two weeks after Sobrato sold a Cupertino strip mall to MetLife Investment Management for $92.5 million.  

Invesco has been an active investor in Silicon Valley real estate.In October, a joint venture with Invesco sold an office building it developed in Sunnyvale’s Peery Park district for $222 million. A year ago, it paid $119 million for a five-building industrial park in Morgan Hill.

— Dana Bartholomew

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