SAN JOSE — An eye-catching office tower in downtown San Jose has landed more than $200 million in key financing, a deal that shows investors are confident in the project and its owner, despite a sour office market.
The 19-story office tower, located at 200 Park Avenue in San Jose, has obtained $220 million in permanent financing from Nuveen Green Capital, according to documents filed on Oct. 15 with the Santra Clara County Recorder’s Office.
200 Park office tower at 200 Park Ave. in downtown San Jose, lower center, with the three proposed CityView Plaza towers to the left and behind, concept. The existing Signia by Hilton San Jose is visible in the right background. (Gensler)
The deal indicates that financiers see the 200 Park office tower and its principal developer, Jay Paul Co., as solid and dependable investments with plenty of upside.
“We are very proud to have provided an historic $220 million C-PACE facility for this exceptional, high-quality asset,” said Nuveen Green Capital senior director Cory Jubran. “The Jay Paul Co. team has developed an iconic, ultramodern property in the heart of Silicon Valley.”
200 Park, a 19-story office tower in downtown San Jose that totals 971,000 square feet. (George Avalos/Bay Area News Group)
The $220 million in permanent financing replaced and fully repaid a loan that JPMorgan Chase provided in 2021 to fund the office tower’s construction.
Newmark, a commercial real estate firm, is seeking the first tenants for the currently vacant office tower, which totals 971,000 square feet. Newmark executives Phil Mahoney and Mike Saign are leading the marketing efforts.
The office tower’s numerous green energy and environmentally friendly features helped to attract financing through the Property Assessed Clean Energy, or PACE program, created by the California Statewide Communities Development Authority.
“The PACE program is a resource for residential and commercial property owners to finance energy efficiency, renewable energy, water conservation and seismic improvements,” according to a post on the California Statewide Communities Development Authority.
The financing also indicates that Nuveen Green Capital believes Jay Paul Co. and its Newmark brokers will be able to land one or more tenants to fill up the office tower despite the sky-high vacancy levels in downtown San Jose.
Jay Paul Co. has a robust track record of attracting big tech companies as tenants to its office buildings in multiple South Bay markets.
These high-profile tenants include search giant Google, Facebook app owner Meta Platforms, and e-commerce titan Amazon.
The financing also offers hope that investors believe downtown San Jose can turn the corner and begin attracting more office tenants.
“Nuveen Green Capital made this unique and complex financing structure possible for our 200 Park project,” said Jay Paul Co. chief investment officer Matt Lituchy. “The team successfully navigated us through the C-PACE process and provided one of the largest transactions of its kind.”