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San Francisco

Office Properties Income Trust to sell office campus in Santa Clara

Former ServiceNow headquarters features 35-foot digital sign and location near Nvidia

Office Properties Income Trust to Sell Campus in Santa Clara
Office Properties Income Trust's Yael Duffy; 3250-3260 Jay Street (Getty, Loopnet, Office Properties Income Trust)

Office Properties Income Trust has listed a 149,000-square-foot office campus in Santa Clara for sale at an undisclosed price.

The Massachusetts-based real estate investment trust put the two-building property that once served as the headquarters for ServiceNow up for sale at 3250-3260 Jay Street, the San Francisco Business Times reported.

Office Properties, among several REITS run by RMR Group, bought the two-story campus as part of its acquisition of Select Income REIT in 2018. 

Select Income bought the campus as part of its acquisition of Cole Corporate Income Trust, which purchased the property along with four others in 2013 for $201 million.

ServiceNow signed a long-term lease for the property in 2012 and relocated its hub three years later. The software firm’s lease expires this spring.

The vacant office campus, built in 1982 on 7.9 acres, is close to the offices of Applied Materials and Nvidia. It sports a 35-foot “digital monument sign” on Highway 101, according to Loopnet. It has a tax assessor’s market value of $78.6 million, according to PropertyShark.

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Brokers Andy Zighelboim, Kevin Moul, Bob Gilley and Brad Idleman of Colliers hold the listing.

Last year, Office Properties Income sold eight of its 160 properties for $45 million, President Yael Duffy told analysts on a February earnings call. He said the trust had “identified and are in various stages of bringing additional properties to market.”

The REIT is targeting for sale its older, capital-intensive properties and sites it believes have maximized value, it said in regulatory documents filed late last year. Office Properties Income, facing a wave of upcoming debt maturities, plans to use the proceeds to fund development projects and repay its debt.

Santa Clara’s 21.7 million-square-foot office market had an availability rate of 26.4 percent in the fourth quarter, according to Colliers.

— Dana Bartholomew

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Office Properties Income Trust