College snags downtown San Jose site for new headquarters
Silicon Valley Business Journal, 1/16/2013
The San Jose/Evergreen Community College District has bought a downtown office building and will move its administrative offices - and more than 60 jobs - to the central business district.
The district, which includes Evergreen Valley College and San Jose City College, acquired 40 South Market St. for about $4.3 million, Chancellor Rita Cepeda told me. Sleepy Hollow Investment Co. was the seller of the seven-story, 41,569-square-foot building.
"Our board was clear that they wanted a downtown presence that would be iconic for our district, and this will make sure the community is aware of us," Cepeda said.
The district offices are currently located at 4750 San Felipe Road, on the Evergreen College campus. Its sister school, San Jose City College, is about 11 miles away, near the intersection of South Bascom Avenue and Parkmoor Avenue. The new location will put the district's HQ about midway between the two, Cepeda said, making it easier to conduct business.
Cepeda said all district administrative services, including boardroom meetings, will move to the new building within 18 months.
The deal caps a long search for space that also saw the district consider building new or rehabbing offices on one of the campuses, but the current market made buying an existing building attractive, Cepeda said.
"It's actually costlier to bring a current facility up to par than to build," she said. "It's also on transit and is close to San Jose State."
"I really think it was a match made in heaven," said Lisa M. Gillmor of Public Property Advisors, which represented the college district. "The visibility is going to be incredible."
The landlord was represented by Michael Speers of Cassidy Turley, and Dave Schmidt and Duffy D'Angelo, both of Colliers International.
"It's ideal for an owner-user," Schmidt told me.
That's partly because the building was about two-thirds vacant, which allows the college district to move in without waiting for tenants' leases to expire. Existing tenants include RMW Architecture & Interiors, Wells Fargo Advisors, and Univision Radio.
This is the third downtown office building to trade in recent weeks. DiNapoli Capital Partners and Angelo Gordon acquired 160 West Santa Clara St. in December. Also in December, CBRE Global Investors picked up 50 West San Fernando St.