Thor Equities Group, a foremost developer of urban commercial property globally, has purchased 350 Holger Way, a 96,502-square-foot class-A office building in San Jose, California, a notably tight market for R&D space.
350 Holger Way spans three levels of approximately 32,000 square feet each. The building is fully leased to NXP Semiconductors, which develops semiconductors used for mobile and 5G connectivity, and uses the building for research and development functions with associated office space.
The property was fully renovated in 2019 with an exterior refresh and new creative office space, tenant lounge and gym and updated lobby. It has 350 feet of prominent highway-frontage and is in close proximity to a high-demand semiconductor talent base, residential communities, retail and hotels, commuter rail and the San Jose International Airport.
“The R&D and life sciences industries are driving some of the most profound changes to our lives and solving the world’s biggest problems. We are committed to owning and operating premier spaces around the country that will empower today’s researchers and scientists. This acquisition of a fully leased R&D building gives us a foothold into one of the most sought-after innovation-centric markets in the country,” said Joseph Sitt, chairman of Thor Equities Group.
The acquisition marks Thor’s twelfth California commercial property. Situated within “The Golden Triangle” of Silicon Valley, 350 Holger is strategically located between a number of Big Tech headquarters. Within five miles of the building are the campuses of Nvidia, Intel, AMD and Paypal, while Googleplex is about 10 miles west. New residential, retail and hotel properties are rising nearby to accommodate the tech workforce and business travelers.
The seller is a public REIT entity of KBS, a private equity real estate firm based in Newport Beach, California.
Purchase of this R&D building comes as Thor Equities bounds forward with Thor Life Sciences, a division dedicated to investing in commercial property utilized by the flourishing life sciences sector, which requires specialized R&D space to operate. Rising rents and low vacancy rates are forecast for the U.S. life sciences sector into 2021, according recent research released by CBRE. The San Francisco Bay Area, which includes San Jose, has the lowest vacancy of life sciences R&D space in the country, with just 1.5%, according to CBRE.
Thor Equities has purchased three such properties within the past year, mostly recently spending $27.1 million for 7 Powder Horn Drive, a 180,000-square-foot R&D and manufacturing facility in central New Jersey that is fully leased to Celgene.
ABOUT THOR EQUITIES GROUP:
Thor Equities is a leader in the development, leasing and management of office, industrial, laboratory, residential, hotel and mixed-use assets in premier urban locations worldwide. The company operates in major cities around the globe and has a property portfolio totaling $20 billion with a development pipeline in excess of 50 million square feet. Thor has a strong presence on three continents and in addition to its US holdings, the company has assets in European gateway cities including London, Paris, Madrid, and Milan, and is the largest developer in Mexico through its Latin American division with a development pipeline of over 18 million square feet. Thor maximizes returns for institutional investors by recognizing a property’s potential, reducing operating expenses, increasing tenant satisfaction, leveraging market trends to maintain a long-term competitive edge. For more information, visit www.thorequities.com.
