KBS Sells The Almaden Office Campus in Downtown San Jose to SFF Realty Partners for $82 Million

KBS has sold The Almaden, a three-building, 416,126-square-foot office campus at 1, 55 and 99 Almaden Boulevard in Downtown San Jose, California, to SFF Realty Partners for $82 million, or approximately $197 per square foot. Newmark announced on Oct. 12, 2026, that it represented the seller in the transaction.

Newmark said the deal is the largest multi-tenant office trade in San Jose, by both square footage and price, since early 2020, according to Newmark Research.

KBS Sale of The Almaden: Deal Details

The seller was KBS Real Estate Investment Trust III, an affiliated KBS real estate investment trust. Newmark described KBS as one of the largest owners of premier commercial real estate in the nation. SFF Realty Partners was the buyer.

Newmark President of Western Capital Markets and Executive Vice Chairman Steven Golubchik, Vice Chairman Edmund Najera and Senior Managing Director Darren Hollak represented KBS in the transaction.

KBS acquired the property in September 2015 for $150 million, or roughly $360 per square foot. The $82 million sale price is about 45% below that figure in nominal dollars, and the per-square-foot value fell from approximately $360 to about $197. The reduction came despite more than $49 million in combined ownership and tenant capital investment in the campus since 2015, according to Newmark.

Property Profile: Downtown San Jose's SoFA District

The Almaden comprises three office buildings and a 1,264-stall parking structure in the heart of Downtown San Jose's SoFA District. The campus sits on approximately 5.81 acres, and the buildings rise approximately 12, 8 and 10 stories. The buildings were developed around 1980 and 1981, and KBS property information lists a 2006 renovation.

Zoom Communications' global headquarters anchors the campus and occupies approximately 25% of it, according to Newmark. Marketing materials show available suites across all three buildings, including about 12,430 square feet at 99 Almaden Boulevard, 4,801 square feet at 1 Almaden Boulevard and a 17,941-square-foot full floor at 55 Almaden Boulevard.

The property is within walking distance of Diridon Station, San Pedro Square and Downtown San Jose's amenity base. Amenities include a fitness center, tenant lounge, outdoor collaboration areas and an on-site café. The campus has immediate access to Caltrain, VTA Light Rail, Amtrak and future BART service through Diridon Station.

Comments From Newmark and KBS

"This transaction demonstrates the depth of institutional demand for multi-tenant office assets," said Golubchik. "Investors are laser focused on well-located, highly-amenitized office properties in markets where recovery fundamentals are strongest. The Almaden stood out as a rare opportunity to acquire a landmark Downtown San Jose asset with strong tenancy, substantial capital investment and meaningful upside as the market continues to rebound."

Najera said buyers are becoming increasingly comfortable underwriting assets in premier urban locations where leasing fundamentals are improving. "Downtown San Jose is beginning to benefit from many of the same recovery trends we've seen emerge in San Francisco and core Bay Area office markets," he said. "As competition for amenitized office space continues to build throughout the Valley, Downtown submarkets that were previously overlooked for suburban product are increasingly drawing interest from tenants and investors alike."

Tim Helgeson, senior vice president and investment manager of The Almaden at KBS, said the owner focused during its hold period on strategic capital investment and a high-quality tenant experience. "We wish SFF Realty Partners continued success," Helgeson said.

Silicon Valley Office Market Conditions

According to Newmark Research, year-to-date net absorption in Silicon Valley surpassed 1.3 million square feet, the market's seventh consecutive quarter of positive absorption. Vacancy declined to 15.2%. First-half lease volume reached its highest level since 2018, and gross absorption exceeded 3.1 million square feet for a second consecutive quarter, which Newmark said signals a return to pre-pandemic demand levels.

Other market data places Silicon Valley vacancy at 15.9% in the third quarter, down from 16.2% in the second quarter and 17.5% a year earlier. The figures differ by reporting period and methodology, but vacancy remains elevated even as it has declined.

The pricing of The Almaden shows that improving leasing activity has not translated into a full recovery in property valuations. SFF Realty Partners acquired the campus at a basis well below KBS's 2015 purchase price.

Sources

• Newmark press release: Newmark Assists KBS in the Sale of the Largest Multi-Tenant Office Sale in San Jose, California Since 2020
• Newmark Research: Silicon Valley Market Reports