San Jose’s Medical Office Market Heats Up with $13.2 Million Building Sale
The medical office real estate sector in San Jose continues to attract investors, as evidenced by a recent transaction where a property at 614 Tully Road changed hands for $13.2 million. Sold by Market Street Development to an entity affiliated with Mayfield Pacific LLC, led by Thi Mai Tram Trinh and Tuan Anh Tran, the deal underscores the sustained interest in the city's commercial spaces. Spanning 25,632 square feet on a 1.77-acre lot, the building is primarily occupied by DaVita Dialysis and the US Army Corps of Engineers, highlighting the diversity of tenants and the strategic importance of medical office assets in the region.
Purchased in late 2019 for $9.5 million and initially listed for $17.3 million, the sale price of approximately $514 per square foot reflects the high value placed on healthcare-related real estate in San Jose. With leases extending to 2036 for DaVita and 2027 for the US Army Corps of Engineers, the building promises long-term tenant stability. This transaction is part of a larger trend of medical office properties being highly sought after in San Jose, further exemplified by LGTC Group's acquisition of a 17,200 square foot facility for its outpatient mental health center, marking the city as a burgeoning hub for medical and health services investments.
Lennar Homes Advances San Ramon Development with $40.5 Million Site Acquisition
In a significant move for the Bay Area's residential landscape, Lennar Homes of California has secured a new project site in San Ramon for $40.5 million, setting the stage for a transformative residential community. The purchased property, currently hosting two office buildings at Sunset Business Park, spans 9.5 acres and is poised for redevelopment into a vibrant housing project, showcasing Lennar's commitment to expanding its footprint in the region.
The strategic acquisition from Nearon Enterprises will pave the way for the demolition of existing structures to make room for 86 detached single-family homes and 31 attached residential units, offering a mix of market-rate and below-market-rate housing options. The development plan emphasizes community integration and accessibility, featuring a unique Iron Horse Trail themed paseo that connects residents directly to the surrounding natural and urban environment.
With a design focused on maximizing open space and providing ample parking, the project, helmed by William Hezmalhalch Architects and supported by Environmental Foresight, Inc. and CBG for landscaping and civil engineering, respectively, represents a noteworthy contribution to San Ramon's housing market and a step forward in meeting the area's growing demand for diverse residential options.
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