Fang Holdings, the parent company of fang.com, the Chinese provider of online real estate business service is making a big bet in San Jose. The company just closed on the purchase of The Campus at First, a 265,000 square foot, two building campus in San Jose, for $58.5 million, or just around $220 per square foot. The sale was first reported by the San Jose Mercury News.
The properties that Fang purchased are located at 3060 N. First St. and 3080 N. First St. in San Jose. Both buildings are billed as Class A headquarters within Silicon Valley’s Golden Triangle, however they have been empty since Micron Technology left the buildings. The buildings could provide any company prominent identity at the the site, which sits at the southeast corner of North First Street and Montague Expressway, practically at the epicenter of technological activity in Silicon Valley.
The two buildings are not similar in size and scale. The 3080 N. First St. building is a 6-story Class A office building that is 119,780 square feet, according to a flyer from Colliers International. The 3060 building has fewer stories, three, but the building itself is 145,184 square feet. The Campus at First, as it is called, was constructed between 1995 and 1999 and built by Devcon Construction.
Along with offices, the property also offers lab space throughout both buildings complete with ESD flooring, CDA and vacuum risers that run vertical through the building core for distribution on each floor, according to the building flyer. Both buildings also includ e existing data centers.
It is not clear how the property will be used by the new owners. Fang Holdings has had a somewhat challenging year in 2017. The company is accused of posting misleading information about its online sales, as well as a wider than expected second quarter of 2017 loss, which resulted in a significant drop in the value of the company’s shares earlier this year. This was followed by a class action law suit by the company’s investors, although the value of the company’s stock has retained its value from the past.
The per square foot pricing paid for this property is a slight discount on what properties have been trading recently in Silicon Valley. Yet, it is conceivable that the buildings may need some upgrades, and the value of the sale is likely reflected in the fact that the buildings are empty.