SAN JOSE — A big office building in San Jose has been bought at a price that’s far less than its prior value in a deal that underscores the frail state of the Bay Area office market.
LBA Realty, acting through an affiliate, paid $18.5 million for the San Jose office building, which is at 3550 North First Street, according to documents filed on Feb. 14 with the Santa Clara County Recorder’s Office.
The $18.5 million price is about 42% below the most recently available value for the building of $31.7 million as reported for January 2024 by the Santa Clara County Recorder’s Office.
Analog Devices, a semiconductor company, sold the building to the LBA Realty affiliate. LBA is one of the nation’s stalwart and savvy real estate firms.
LBA bought the building through an all-cash deal, according to the property documents.
At the time of the transaction, the building was being marketed for sale or lease by Cushman & Wakefield commercial real estate brokers Scott Prosser and Jack DePuy, according to a brochure.
The building totals 76,700 square feet, the marketing materials show. The office structure is part of a 5.9-acre lot at the corner of North First Street and Baypointe Drive.
Soaring vacancy rates, slumping rents, and plunging property values now haunt the once-robust Bay Area office market.
Some of the financial woes are severe enough that a growing number of Bay Area office buildings have flopped into loan delinquencies or even foreclosures.