Campus Acquisition, One of Market's Largest of 2013, Includes 426,000 Sq Ft of Planned New Construction
USAA Real Estate has acquired America Center, a 430,852-square-foot office campus, along with entitled land for two more office buildings in San Jose, CA, one of the hottest office construction markets in the country over the last year.
At build out, the center will consist of four buildings totaling over 850,000 square feet. The first phase of the center, completed in 2009, includes a pair of six-story buildings that are 83% leased and serve as headquarters for the Polycom and Flextronics technology companies.
The second phase, acquired by San Antonio-based USAA in a joint venture with original America Center developer Legacy Partners, calls for two 213,800-square-foot, six-story office buildings. Terms of the transaction were not disclosed but market buzz puts the price tag at north of $210 million. Legacy will be USAA's development partner.
The Silicon Valley, driven by tech-industry employment growth and demand for large blocks of space, is seeing a strong uptick in office sector development. The market was among the nation's leaders in year-over-year occupancy gains, net absorption and construction starts in third-quarter 2013, according to CoStar data.
"One of our key objectives is to invest in high growth technology markets by acquiring and developing high-quality properties," noted USAA Real Estate Co. CEO Len O'Donnell.