EMERYVILLE, Calif.--(BUSINESS WIRE)--Harvest Properties, (“Harvest”), a full service commercial real estate investment, development and management firm and longtime partner Invesco Real Estate (“Invesco”), a premier global investment firm, recently announced they completed the sale of Towers @ 2nd in San Jose, California, to Brookfield for an undisclosed amount.
Towers @ 2nd is well located in the heart of Downtown San Jose (75 E. Santa Clara St. and 4 N. Second St.) one of the most rapidly transforming urban centers in the San Francisco Bay Area and is situated at a prime, transit-oriented location adjacent to a Valley Transportation Authority (VTA) light rail stop on Second Street. The two 13- and 14-story office towers total 411,544 square feet and feature efficient 14,500 and 17,500 square foot floor plates that accommodate a wide variety of tenant sizes.
“This sale represents a successful outcome for all parties, and we are very pleased with the value that our partnership with Invesco was able to create at this project throughout our ownership period,” said Awais Mughal, partner at Harvest Properties. “Our vision for this property and successful repositioning to attract growing, technology-related tenants and capitalize on the notable upswing in the downtown San Jose office market allowed us to both deliver on our original investment plan and, ultimately, offer the new owners a high-quality asset in a dynamic, improving market.”
Since taking ownership in 2015, Harvest and Invesco completed 150,000 square feet of new and renewal leasing including a 73,000 square foot, 15-year lease with community office space provider WeWork, their first location in Silicon Valley. Additionally, during their ownership, the partnership completed a significant $11.1 million asset repositioning and renovation to create a unique urban office campus environment, complete with all the inherent qualities that creative office tenants seek. The many improvements included several new amenity spaces featuring a fitness center and locker room with private showers, a bike lab, an arcade lounge, a training and conference center, and a VIP lounge connected to an exclusive outdoor plaza with built-in seating and lighting.
Towers @ 2nd continues to be an exciting property to watch. “Brookfield is excited to acquire this well-located asset in a growing urban market with future upside, and looks forward to continuing to execute on the repositioning program begun by Harvest and Invesco,” said Matthew Cherry, Investor Relations at Brookfield. “Brookfield anticipates spending an additional $32 million to further enhance the interiors and common areas of the property and complete its lease-up to stabilization. Cushman & Wakefield has been retained for leasing, and Harvest has been retained for property management.”
Towers @ 2nd represented Harvest and Invesco’s sixth deal together. Most recently, Harvest Properties and Invesco purchased 55 Hawthorne Street in San Francisco in July 2014 and sold it to CIM Group in December 2016.
Russell Ingrum, Joe Moriarty, Scott J. Prosser and Tyler Meyerdirk at CBRE represented Harvest and Invesco on the transaction.
About Harvest Properties
Harvest Properties is a vertically-integrated, full-service commercial real estate investment firm that specializes in the acquisition, reposition, entitlement, development, management and financing of commercial property, primarily through joint-venture investments in Northern California. Over the last decade, Harvest has become an established leader in the marketplace by generating attractive returns for its financial partners, providing creative solutions and outstanding service. Harvest Properties’ portfolio comprises approximately ten million square feet of office, industrial, R&D and retail properties in the San Francisco Bay Area. For more information, please visit www.harvestproperties.com.
About Invesco Real Estate
Established in 1983, Invesco Real Estate manages $65.1 billion of real estate investments, which includes $43.9 billion in direct real estate portfolios and $21.2 billion in real estate securities (as of September 30, 2017). With more than 460 employees in 21 offices worldwide, the group focuses on top down market and property type fundamentals combined with bottom up local market intelligence. Senior members of the management team have worked together for more than 28 years, contributing to the consistent implementation of Invesco’s investment strategy and resulting performance. Invesco Real Estate is a unit of Invesco Ltd., a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in more than 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com and at www.invescorealestate.com.