Blackstone REIT to Acquire San Jose Office Complex
October 15, 2020 | James Sprow | Blue Vault
The Blackstone Group Inc. agreed to acquire a two-building office complex in San Jose, Calif., through its Blackstone Real Estate Income Trust Inc. unit for approximately $275 million, or roughly $770 per square foot, citing a person familiar with the matter who wasn’t authorized to speak about the private transaction. According to the report, the property is leased to Roku, Inc.
The two buildings Blackstone is buying are part of a project called Coleman Highline, a new development that’s walking distance to a Caltrain station and the stadium where Major League Soccer’s San Jose Earthquakes play.
Coleman Highline will eventually include 1.5 million square feet of office space split between eight buildings alongside up to two new hotels and three secured parking structures.
While sales of office buildings have slowed during the pandemic, the deal highlights that newer properties with long-term tenants are finding buyers even as employees work-from-home and companies reconsider how much space they’ll need in the future.
Blackstone, which is making the investment through its nontraded real estate investment trust, BREIT, has been investing in real estate used to create and distribute streaming entertainment. In August, the firm announced a partnership with Hudson Pacific Properties Inc. in three Hollywood studio lots.
Roku, a maker of devices for streaming TV, moved its headquarters to the development last year. Blackstone’s deal was previously reported by Real Estate Alert, which said Roku has more than nine years remaining on its lease.
Sources: S&P Global Market Intelligence, Crain’s New York Business, Bloomberg
