South Bay Office Towers are bought for a lot lower than their previous value

Campbell – The legendary Pruneyard Office Towers in Campbell were bought for an infinite discount on their previous value, equivalent to recordings.

Psai Realt Partners, who acted through a partner, paid $ 54 million in an all-cash deal for the three-to-Tower complex, which, along with Highway 17, is situated along with the documents submitted on February 28 with the office of the Santa Clara County Recorder of the Santa Clara County district.

The office complex within the South Bascom Ave. 1901 amounted to 365,000 square meters.

PSAI Realty paid a price of 65% lower than the estimated value of $ 154.8 million, which the office of the district of Santa Clara County calculated from January 2024.

The 54 million US dollars, which Psai Realty has put down, can be 62% lower than the value of 141.5 million US dollars for the office complex in 2019. This purchase six years ago made Oaktree Capital Partners an alliance in an alliance with Ellis Partners, a veteran real estate company based in San Francisco.

The deal suggests that real estate values ​​proceed to fall for office buildings in the complete Bay area, even for top -class towers within the region equivalent to the Pruneyard Office Complex.

“This is an added value-right event for many office buildings,” said Mark Ritchie, President of the true estate company Ritchie Commercial. “The construction owners and lenders will not get out of this whole.”

Pruneyard Tower One is eighteen floors and total foot of 119,000 square meters; The one -story tower two is 119,000 square foot; And Pruneyard Place is six floors high with 127,000 square foot.

At a time, the Campbell City officials had approved a fourth tower on the location, a five -story structure that was 100,000 square meters.

The sacking values ​​of Commercial Real Estate are able to develop into a expanded challenge for governments and agencies of the Bay Area that rely upon income taxes.

“The communities will really feel this,” said Ritchie. “For many years we’ve got designed our cities with revenue in city centers and sales consumed districts. The downturn for the office market doesn’t seem to present in presently. “

Originally published: March 3, 2025 at 6:10 a.m. PST