The owners of a campus that was home to a technical college in Silicon Valley have received a tough lesson in math courtesy of its recent sale at a discount of nearly 20 percent from the price paid seven years ago.
The deal likely reflects the Institute for Business & Technology’s recent move out of the 59,000-square-foot commercial complex at 2400 Walsh Avenue in Santa Clara. The school now operates about three miles away in San Jose, with classes scheduled at 91 East Tasman Drive, the Silicon Valley Business Journal reported.
Mosaic Equities and Fortune Realty sold the Santa Clara property for $16 million, according to Santa Clara County Clerk Recorder’s Office. They paid $19.6 million for the property in 2018.
Buyer Nanez Enterprises got a property that is nearly 50 years old with a remodel in 1990. It is about a five-minute walk from the headquarters of Nvidia — a company that has boomed for its status as a leading maker of computer chips for AI — as well as a number of data centers.
For all the buzz about AI, the Institute for Business & Technology offers programs in more traditional sectors, with certificates for careers such as electrician, medical assistant and automotive technician. Its new location is next to the University of Silicon Valley.
The former campus traded for about $271 per square foot, in the middle of a wide range of sales in Silicon Valley. In November, Essex Property Trust bought two Mountain View office buildings for $26 million, or $294 per square foot, roughly on par with the Nanez Enterprises purchase. On the low end, Hudson Pacific Properties announced the same month it sold a Palo Alto building for $23 million, or $126 a foot.
On the high end, in October Sand Hill Commons in Meno Park traded for $222 million or about $1,600 per square foot. A Yardi study found that the average price in San Francisco’s central business district was $274, nearly the same as the Nanez deal.