Newmark Arranges Sale of 603,666-Square-Foot Office Campus in San Jose, California

Rhea-AI Summary

Newmark has successfully completed the sale of HQ @ First, a 603,666-square-foot office campus in San Jose, California, fully leased to a global technology firm. The transaction was facilitated by Steven Golubchik and others, with Mori Trust Co., Ltd. selling to KKR through its Real Estate Select Trust fund. Located in Silicon Valley, the campus features a modern design and significant tenant investments. The North San Jose office market has seen 1,034,998 square feet of positive net absorption since 2016, with a current 0.0% availability rate.

Positive

• Completed sale of HQ @ First, indicating strong demand in the market.
• 100% leased to a global technology company, ensuring stable cash flow.
• Transaction reflects favorable market conditions with liquidity and global capital interest.

Negative

• None.

SAN FRANCISCO, August 2, 2021 /PRNewswire/ -- Newmark¹ announces it has completed the sale of HQ @ First, a 603,666-square-foot headquarters campus located at 110, 120, 130 Holger Way in San Jose, California. The Class A campus is 100% leased to a global technology company.

Newmark Vice Chairman and Head of Northern California Capital Markets Steven Golubchik, Vice Chairman Edmund Najera, Senior Managing Director Jonathan Schaefler and Director Darren Hollak facilitated the transaction. The seller was Mori Trust Co., Ltd., a Japan-based major real estate developer. KKR, a leading global investment firm, purchased the property through its KKR Real Estate Select Trust fund.

"HQ @ First benefited from incredibly liquid financing markets and robust demand from both domestic and global capital sources," said Golubchik.

The best-in-class corporate campus features a two-story lobby, all-hands conference rooms, a fitness center and a 300+ seat cafeteria space. The buildings have benefitted from substantial tenant investments, including modern office finishes with both open and personal desk areas in addition to over 60,000 square feet of lab space.

HQ @ First is situated in North San Jose, the heart of Silicon Valley, and is surrounded by many of the world's most recognizable companies. The property presents freeway visibility, walkable access to abundant retail amenities and proximity to public and vehicular transportation.

The North San Jose single-tenant Class A office market comprises nearly three million square feet and is anchored by some of the most prominent technology companies and financial institutions around the globe. Since 2016, the single-tenant office market in the region's 'Golden Triangle' has recorded 1,034,998 square feet of positive net absorption with an availability rate of 10.65% during the same time frame, according to Newmark Research. In 21Q2, the availability rate in the Golden Triangle submarket has since dropped to 0.0%.

About Newmark

Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Our comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, growing startups to leading companies. In 2020, Newmark generated revenues in excess of $1.9 billion. Newmark, together with London-based partner Knight Frank and independently owned licensees, operates globally from approximately 490 offices with 19,300 professionals. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark

Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE Newmark Group, Inc.

FAQ

What property did Newmark sell in San Jose, California?

Newmark sold the HQ @ First, a 603,666-square-foot office campus.

Who purchased the HQ @ First campus from Newmark?

KKR purchased the HQ @ First campus through its KKR Real Estate Select Trust fund.

What is the significance of the HQ @ First being 100% leased?

Being 100% leased to a global technology company ensures stable revenue for Newmark.

What is the current state of the North San Jose office market?

The North San Jose office market has recorded 1,034,998 square feet of positive net absorption since 2016, currently with a 0.0% availability rate.

Who facilitated the sale of the HQ @ First campus?

The sale was facilitated by Steven Golubchik, Edmund Najera, Jonathan Schaefler, and Darren Hollak.