San Jose tech campus sells at a loss, may be replaced by 700 homes

SAN JOSE — A San Jose tech campus has landed a buyer and is being sold for a loss in a deal that paves the way for the development of more than 700 homes on the choice property, public documents show.

Global Net Lease has struck a deal to sell a San Jose office site totaling roughly 164,000 square feet for $50 million, the company stated Tuesday in a filing with the Securities and Exchange Commission.

The real estate investment firm revealed that the office center is being sold at a loss compared with the $52.5 million that Global Net Lease paid in 2014 for the property, the SEC documents show.

The real estate investment firm didn’t disclose the location in the regulatory filing. However, the Global Net Lease website shows that in 2014 the company paid $52.5 million to buy a three-building office complex in San Jose with addresses of 211, 251 and 281 River Oaks Parkway.

The real estate firm said it has found “a local developer who intends to convert the asset to residential use,” Global Net Lease Chief Executive Officer James Nelson said in a statement.

The office complex listed on the company’s website totals 164,600 square feet. The site consists of three office and research buildings, according to commercial property listing services.