Almaden Financial Plaza has new landlord, Embarcadero Capital Partners
Downtown San Jose’s Almaden Financial Plaza has changed hands.
Embarcadero Capital Partners LLC picked up the three-building, 400,000-square-foot-plus complex, plus a 1,200-car parking structure from Legacy Partners Commercial.
The deal closed in August through a deed-in-lieu of foreclosure, according to documents filed with the Santa Clara County Clerk’s Office.
This type of transaction essentially allows an owner to walk away from a property that may be distressed without going through a foreclosure, said Ronald R. Rossi, founding partner of Rossi, Hamerslough, Reischl & Chuck in San Jose.
County documents filed Aug. 10 state the properties had unpaid debts of $110.2 million.
The properties, located at the intersection of Almaden Boulevard and Santa Clara Street, include One Almaden Blvd. (roughly 153,000 square feet), 55 Almaden Blvd. (140,000 square feet) and 99 Almaden Blvd. (115,000 square feet).
The area includes a number of financial institutions, includingBridge Bank, City National Bank and Union Bank.
Embarcadero’s website lists more than 125,000 square feet of available space at the downtown plaza.
Mark Ritchie, president of Ritchie Commercial, said the triplet of buildings would be attractive to a landlord.
“It’s right off the freeway, has great visibility, and it’s easy to get in,” he said. “They’re very user-friendly.”
Representatives from Legacy Partners Commercial did not return phone calls or emails requesting comment. Embarcadero Capital Partners in Belmont declined to discuss the deal.
Legacy bought the properties at the peak of the market in 2007.Lehman Brothers originally held the note, according to documents on file. The transaction could be a winner for Embarcadero if the property is worth more than what it paid, Rossi said.
Legacy is a major downtown San Jose landlord with a portfolio that includes Legacy Civic Towers (75 E. Santa Clara St. and 4 N. Second St.) and Riverpark Towers (300 Park Ave. and 333 W. San Carlos St.). The tower at 300 Park Ave. is completely vacant, while 333 W. San Carlos St. is 85 to 90 percent leased, according to a broker with knowledge of the property.
Downtown San Jose has continued to struggle from high vacancy and low rents since the economic downturn, said Ritchie, a longtime player in the downtown real estate scene.
“We’re holding to our 25 percent vacancy like it’s a family heirloom,” he said.
Despite the continued glut of space, Ritchie said Almaden Financial Plaza has remained attractive for growing companies and firms desiring prominent visibility from the freeways. “They’re good, workhorse buildings,” he said.
