SANTA CLARA — A big tech campus in Santa Clara has been bought for more than $50 million in a deal that shows buyers are eager for Silicon Valley properties despite the weak Bay Area office sector.
South Bay Development Co., acting through an affiliate, paid $51 million for The Quad at Tasman, an office complex a short distance from Levi’s Stadium, documents filed on Sept. 18 with the Santa Clara County Recorder’s Office show.
Both the buyer and the seller are veteran and top-notch Bay Area real estate firms. San Francisco-based TMG Partners sold The Quad at Tasman to Campbell-based South Bay Development.
South Bay Development bought The Quad through an all-cash deal, the county records show. The seven-building office hub is bounded by Tasman Drive, Patrick Henry Drive, Bunker Hill Lane and Old Ironsides Drive in Santa Clara.
Silicon Valley Bank was a high-profile former tenant and had its headquarters at the site until the bank imploded in March 2023 after a bank run on its assets. The failed bank at one time occupied 50% of the office complex.
GoDaddy, Perspecta, and Knowles are still tenants in the office hub. The Quad totals 410,100 square feet, according to TMG Partners.
The deal suggests that values for office properties continue to be feeble in the Bay Area.
In 2020, TMG Partners paid $152 million for the complex. This suggests The Quad’s value now is roughly 66% below what it was about four years ago.
This sort of decline is in keeping with deals involving other office buildings around the Bay Area, although other transactions point to far steeper declines, especially in moribund markets such as San Francisco.
Despite the property’s slumping value, the office campus boasts several choice features, including its proximity to light rail.
“Amenities include an expansive outdoor courtyard, coffee shop, bocce ball and food truck courts, fitness center, market-ready spaces, modernized entryways and window lines,” according to TMG Partners.