San Jose-based Toeniskoetter
&
amp; Breeding Inc. Development has bought a 38,755-square-foot
office building in town for an estimated $9 million.
Morgan Hill – San Jose-based Toeniskoetter & Breeding Inc. Development has bought a 38,755-square-foot office building in town for an estimated $9 million.
The building development company already owns more than 1 million square feet of Morgan Hill property. The property, located at 610 Jarvis Drive, is a two-story building that will remain occupied by the seller, ComUnity Lending Inc. The transaction occurred Aug. 17.
The development corporation bought the building because the Morgan Hill area is an attractive market, according to TBI Senior Vice President Dan Amend.
ComUnity Lending Inc. is a mortgage company, while TBI builds, manages and operates many corporate offices.
There were a few setbacks in the deal, but other buyers were interested as well.
“It was a competitive situation. But once you go into contract, you go exclusively into negotiations with that buyer. They were successful in closing,” said Paul Melnyk, a broker from NAIBT Commercial who represented ComUnity Lending Inc.
Melynk said that the property went on sale because of market conditions. It was an attractive deal for TBI because the building was a class-A, which is any holding that has a high value in terms of location, design, building standards and efficiency.
“We have quite a bit of space there. We like the submarket. We feel that the strongest side of that market is class-A market space. It seemed liked a good decision,” Amend said.
“Ever since the building was completed seven years ago, we have admired the quality of its design and materials,” he wrote in a press release. “Its acquisition underscores Toeniskoetter & Breeding Development’s continued belief in the strong market for high-quality office buildings in Morgan Hill, where we now have more than one million square feet of R&D, light industrial, retail and office space.”
TBI currently manages the 30-acre Cochrane Business Ranch, the 110-acre Madrone Business Park as well the Paramit Corporation’s building. The company will continue to look for more properties within the community.
“We’re always looking,” Amend said. “It would have to be the right building for the right price.”
