Bank owned commercial office condos

If you are looking to own office space for business use, this is a very good time to be shopping. As was the perfect storm for residential condos that were built in the last 5 years, the same is true of the commercial office condos that were built at the same time. A lot of new product came on line in the last few years - essentially commercial developers created a new type of office building, parceled out to sell as condos. This was a great concept to provide new office space in small sizes so that businesses could buy their own space. The problem was timing. Some of these developments hit the market at $400-$500 per foot. Now developments in Santa Clara county are selling for the $100-$200 per foot range. We are tracking very good deals in Fremont, San Jose, Sunnyvale and Mountain View to name a few.

New Santana Row Rentals in 2011

Ground has already started moving in a massive way behind the Margo building at Santana Row. A fleet of dirt removing trucks parades in and out of Santana Row excavating what will be the underground parking garage for the new 108 unit building. 10 townhouses will be built plus the normal assortment of flats. The rarity of the for sale units at Margo and DeForest will now be increased with rentals being 65% of the housing stock. Owning a unit at Santana Row may only be possible in the 220+ units that Federal Realty Trust released in 2005-2006.

Update on in-house deals

Office Deals: Berryessa large home, short sale preapproved at $600K, goes on market this Friday.
Townhouse style condo Rose Garden, short sale, $325,000, newer, great location.
Local shopping center - $4.2M, 9.0% cap rate, bank directed short sale - no on market.
2 gas stations - San Jose & Gilroy - both distressed fixers - great traffic locations

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