USAA Real Estate Company And Partners Acquire 850,000 Square Foot America Center Complex In San Jose, California
Area Development Online News Desk (12/23/2013)
USAA Real Estate Company, on behalf of its affiliated investment vehicles, acquired America Center, a Class A office campus in San Jose, California, as well as an adjacent development site. The campus borders Sunnyvale and Santa Clara on Highway 237. When fully developed, America Center will consist of four buildings totaling over 850,000 square feet.
According to USAA officials, the property enjoys ease of access to I-880 and I-680 as well as US 101 and proximity to the VTA Light Rail and Bus Lines, the ACE and Caltrain commuter trains. “With flexible and easily divisible floor plates, highly efficient building systems, sweeping vistas over the San Francisco Bay National Wildlife Refuge and a selection of best in class amenities, the property is and will remain highly appealing to Silicon Valley tenants for years to come,” USAA officials said.
"America Center is an exciting acquisition and an important investment on multiple fronts," said USAA Real Estate Company CEO Len O'Donnell. "One of our key objectives is to invest in high growth technology markets by acquiring and developing high-quality properties. More broadly, as a company, we also have made a firm across-the board commitment to invest in sustainable assets whenever possible. This transaction is consistent with that commitment. Finally, we always seek to invest with best in class developers and we are delighted to complete our first transaction with Legacy Partners."
Phase I of America Center, which was completed in 2009, includes two, six-story LEED Gold-certified buildings totaling 430,852 square feet. It is 83 percent leased and serves as the headquarters location for leading high-tech corporations Polycom and Flextronics.
Phase II of America Center consists of an entitled and shovel-ready site with plans for two, six-story 213,800-square-foot office buildings that likewise will be constructed to meet LEED certification requirements. Phase II has been acquired in a Joint Venture with Legacy Partners, America Center's original developer. Legacy will be USAA's development partner on Phase II.
Overall, the project provides an opportunity to lease up the remaining vacancy in Phase I and develop state-of-the-art office space in Phase II, in a technology-driven market that is creating strong employment growth and demand for large blocks of space, the real estate firm said.