Westcore Flips 56,000-SF Office Property

SAN JOSE, CA-Westcore Properties has sold 97 East Brokaw Rd., a 56,000-sf office building here for $13.5 million, which is 50% more than it paid for the asset just 18 months ago. In both transactions, the steel frame building on 2.9 acres was approximately 90% leased.

Neil Johnson, director of acquisitions for Westcore Properties in Northern California, says the upside came from several tenants refreshing their leases at rates much higher than their previous commitment. “Westcore chose to sell the property after rents increased by more than 35% in the local submarket,” he says. “Significant value was added by renewing several tenants and rolling their rents to market levels.”

Built in 1981, the building has a glass exterior, outdoor patio, surface parking and recently upgraded common areas. The major tenants are Alfa Tech, N.A.R. Khan and Bay Area Credit Services. Westcore acquired the asset in May 2006 for $9.05 million.

The new owner is Read Investments. The selling Westcore entities were Westcore Milford LLC, Broadway Center Associates and Westcore Thompson II LLC. Mark Ziemendorf of Cornish & Carey Commercial brokered the transaction.