After more than two years of inactivity, Santa Cruz-based realtor Sheldon Wiseman Commercial Real Estate, along with Cassidy Turley Commercial Real Estate began shopping the office space at $2 per square foot, including all utilities and triple net charges.
“When you compare this to other properties, we are less than the competition for this kind of quality,” said Steve Sheldon, one of the principles of Sheldon Wiseman.
The property is back on the market after Chinese investor Hong Bo Li purchased the building and 24-acre property via an online auction at www.auction.com in July, according to the Silicon Valley Business Journal.
“He has a long-term hold on it,” Sheldon said. “He loves the property and wants to lease it and keep it.”
Two tenants currently lease space in the building — Club 1, a fitness club, and Broadband Discovery Systems, a security technology company.
Jim Wiseman, the other principle from the real estate firm, said leases can range anywhere from 2,000 square feet to 370,000 square feet.
The offices are fully-furnished and include their own thermostat, key-card entry along with security for the entire property. The property also has a full-service cafeteria that would become operational as occupancy increases.
Wiseman said he has two pending offers for sections of the property, and that interest is high compared to the last time the property was on the market several years ago.
“The market was pretty pathetic 2 ½ years ago,” he said. “There’s a demand again that is going to be very helpful (in leasing the property).”
Sheldon said their marketing effort is local, regional, national and even international. Selling points include an anticipated upgrade to make the building the fastest internet connection in the county and the ability to lease out virtually any size of office space.
“If you locate here and anticipate growth, it can accommodate that growth,” Sheldon said.
The building was completed by Borland in 1993 for a cost of $120 million. Borland sold the building for $47 million in 2000 as the company downsized, and leased a portion of the building for 10 years from Scanlan Kemper Bard, in the process remodeling and dividing it.
SKB then sold the property to Triple Net Properties for $60 million in 2004. Triple Net defaulted and lost control of the property in 2011, but it failed to sell at foreclosure auction at the time and real estate investor LNR Property LLC took control before auctioning it this year.
For information: www.sheldonwiseman.com