Kayne Anderson, a Los Angeles-based investment firm, has expanded its presence in the Bay Area with the acquisition of an office park in north San Jose. The company, through an affiliate, purchased the property at 780 Montague Expressway for $30 million from an affiliate of Pacific Realty Associates, according to Mercury News.
The property, known as Pactrust Business Center South, covers 7 acres and consists of seven buildings totaling 95,000 square feet. Current tenants include Hawk Ridge Systems, Lighthouse Photonics, 3D-Micromac America, Cephasonics, and EchoPixel.
This purchase is part of Kayne Anderson’s ongoing strategy to increase its real estate holdings in the region. In July, working with BKM Capital Partners based in Newport Beach, Kayne Anderson acquired a portfolio of industrial properties in the East Bay Area. That deal involved buying three separate sites from Link Logistics Real Estate—a Blackstone Real Estate affiliate—for $120 million. The properties together span 505,000 square feet and are located in Concord and Hayward.
North San Jose has become increasingly attractive to technology and artificial intelligence companies seeking office space. Earlier this month, Menlo Park Equities submitted plans to convert a building at 300 Holger Way into a data center measuring nearly 98,000 square feet. Nvidia has leased that building since late last year.
Additionally, Goodman Group recently bought land at 350 and 370 West Trimble Road for $200 million with plans for another data center. The site was previously considered for a mixed-use tech village by LBA Realty but shifted focus to advanced manufacturing before ultimately moving forward with a new data center proposal earlier this year.
