Blue Owl Real Estate Capital has bought a 90,900-square-foot office building in San Jose for $35.5 million, or 8.9 percent more than for what it sold for three years ago
The New York-based investor paid cash for the three-story building at 1010 Rincon Circle, the San Jose Mercury News reported.
The sellers were Machine Investment Group and Baudpont Capital, both based in New York, which bought the building in late 2021 for $32.6 million
In the spring of 2022, Machine and Buadpont put the building on the market for $55 million.
The property near Interstate 880 and Montague Expressway is fully occupied by Quanta Cloud Technology, also known as QCT, which has a long-term lease. QCT provides hardware and cloud-based software for data centers, which are a fast-growing tech industry sector.
Following a broad shift to remote work, a growing number of Bay Area office buildings are selling for far less than what the sellers paid for them just a few years earlier, but the Rincon Circle sale avoided that outcome. Foreclosures due to delinquent loans have spread across the region’s office market.
Marc Zahr’s Blue Owl Capital is in the midst of a shake-up in response to an evolving commercial real estate landscape.
The New York-based investment asset management firm, which has a heavy presence in Chicago, aims to scale into commercial real estate private credit through a mix of acquisitions, hires and other tactics.
In September, Western Digital cashed out its Milpitas office, R&D and manufacturing campus for $192.5 million, through a sale and 16-year leaseback deal with Blue Owl Capital.
— Dana Bartholomew
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