CORFAC News

San Jose, CA (September 20, 2013) – TRI Commercial/CORFAC International President Tom Martindale, SIOR, announced today that Anton Qiu, a principal in his firm’s San Francisco office, has represented the buyer of a distressed office and retail property located at 675-695 N. 1st Street in San Jose.

A southern California investor paid nearly $12 million for Civic Center Tower, a 13-story office building with approximately 109,850 square feet that was built in 1966 and a 4,300-square-foot retail building on the corner of the property. The seller of the foreclosed property was commercial mortgage special-servicing company LNR Property LLC. The amount borrowed against the property by an earlier owner was $16.5 million in 2007. The recent purchase was made entirely with cash.

Qiu was named asset manager of the two properties and will work with San Jose-based Michael Joseph and David Silberstein of Meacham/Oppenheimer Inc./CORFAC International to manage marketing and leasing.

TRI Commercial/CORFAC International was assigned the property management contract for the two buildings.

Chicago Title Co. leases 25 percent of the square footage, which it uses for its Santa Clara County offices. Other existing tenants include State Bank of India on the ground floor and several law firms and other professional tenants. The retail property is vacant and was formerly occupied by a bank.

The buyer hopes to capture an initial yield in the range of 6.5 percent based on new leases struck at current market rates, Qiu said. Assuming no new tenants before then, occupancy in the property will go down to 75 percent in November after the Santa Clara County Housing Authority leaves 8,600 square feet. The property was 83 percent occupied at sale.

“My client felt there was a lot of value in this transaction. I’m now in contract negotiations to bring in some new tenants. The new owner is taking a long-term view and plans to hold on to the property for a long time,” said Anton Qiu.

About TRI Commercial/CORFAC International
Founded in 1977, TRI Commercial/CORFAC International is a leading Northern California commercial real estate brokerage and property management firm specializing in San Francisco, East Bay and the Sacramento Metro commercial property markets. The company has expertise in tenant representation services, locating offices for rent, negotiating commercial lease agreements on behalf of landlords and occupiers and represents clients buy and sell commercial and investment-grade property. Locally based yet globally connected with CORFAC International, TRI Commercial’s real estate services include office, retail, land, multifamily and industrial properties. The firm has offices in San Francisco, Oakland, Walnut Creek, Sacramento, Roseville and Rocklin. For more information, visit www.tricommercial.com or call 415.268.2200.

About CORFAC International
CORFAC International (Corporate Facility Advisors) is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail real estate leasing and investment sales, multifamily property acquisitions and dispositions, property management and corporate services.  In association with FIABCI (the International Real Estate Federation) and global affiliates, CORFAC International offers commercial real estate services with market reach in 65 countries worldwide. In recent years, CORFAC firms have averaged over 9600 completed transactions annually totaling more than 513 million square feet worth an excess of $5.95 billion for their customers. For more information on the CORFAC network, contact 703.532.6160 or visit www.corfac.com.