TMG Partners and KKR-managed accounts buy San Jose's Skyport Plaza for $75.5 million

TMG Partners has acquired Skyport Plaza, a 435,000-square-foot office and retail complex in San Jose, with accounts managed by KKR, according to IREI. PRED reported on Oct. 16 that the price was $75.5 million, or about $174 a square foot across the four buildings.

The two eight-story office towers total about 393,000 square feet, were formerly occupied by Qualcomm and are currently vacant. The two retail buildings total about 42,000 square feet and are 97 percent leased to a childcare facility and a handful of restaurants and cafes. The addresses are 1650 and 1700 Technology Drive and 50 and 90 Skyport Drive. The report does not name the seller.

TMG signed the county lease, which is projected to start in the first quarter of 2029 and run through 2059, after an extensive renovation of the two office buildings. Per PRED's earlier reporting, it covers the full 393,000-square-foot office component and runs 30 years.

“We're pleased to support the County of Santa Clara in their consolidation at Skyport Plaza, which will provide a more efficient and modern experience for their employees,” said Ben Kochalski, co-CEO of TMG Partners. He said the firm would work with the county on property improvements to modernize infrastructure for its staff and to give them a location with convenient access to services and restaurants.

TMG's acquisition follows Lone Star's September purchase of a 2.2 million-square-foot Silicon Valley R&D portfolio.