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October 10, 2017

Exclusive: Former Cisco building transforms into multi-tenant, incubator space

Silicon Valley Business Journal

Janice Bitters

A former Cisco Systems building is becoming a hub for small businesses looking for about 10,000-square feet of Class-A office space - an elusive opportunity in Silicon Valley for many growing companies.

The 95,550-square-foot building at 250 W. Tasman Drive in North San Jose just locked in its third tenant: Shenzhen Association of Internet of Things, a Chinese incubator company.

The group is taking up 10,000 square feet, the last bit of ground-floor space left in the property, which sits a short distance to the Champion Station light rail transit stop and not far from where Related Cos. is planning a 9 million-square-foot mixed-use development just over the border in Santa Clara.

But the second floor of the two-story building is still vacant, and the property owner, a Chinese group called GEIRINA, is looking to split the remaining 47,775 square feet up into four, about 10,000-square-foot parts.

That number is flexible, according to Rodney Moreschini, senior vice president at Kidder Mathews, which is working to lease the property. "We're getting a lot of activity in the 10,000-square-foot range," he said. "So we are very optimistic, just based on what we've been seeing, that we are going to get the rest of that leased up."

The brokerage team at Kidder Mathews China Services, led by Moreschini along with Eric Bluestein and Skip Whitney, is working with GEIRINA to lease the building, which the company bought in 2016 for nearly $37.7 million from San Francisco-based TMG Partners. Prior to that sale, TMG had renovated the property, including the lobby and landscaping. The inside of the building is ready for tenant improvements, which won't start until after a lease is locked in, Moreschini said.

"It's a quick [tenant improvement project] to divide it," he said. "They move really quick with their contractors and we know this because they did it downstairs." Moreschini said the group is already in talks with "a couple" of interested companies to fill part of the second floor.

In January, Midea, a major appliances producer, also signed an 8,900-square-foot lease for the ground floor.

Moreschini said Shenzhen, the building's newest tenant, was attracted to the property in part because of the building's Chinese ownership. GEIRINA, which is an acronym for the Global Energy Interconnection Research Institute North America, bought the building last year and takes up 20,000 square feet of the ground floor.

GEIRINA is "a very large and very well-known company within China, and they liked the fact that there is another Chinese company there, too," he said. "So this building is becoming a flagship for Chinese companies. Culturally you have the best of Silicon Valley in its location and then you have the ability to bring in other tenants from China that all like to collaborate and share new ideas with each other."

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