The Wonderful Co. Spends $55M On Silicon Valley Office Building
In a twist for a nationwide office climate in which buildings are increasingly sold for peanuts, a San Jose building was bought with pistachios.
An affiliate of the founders of The Wonderful Co., which sells, among other things, pistachios, pomegranate juice and Fiji bottled water, purchased 350 Holger Way for $55M.
Wonderful founders Stewart and Lynda Resnick bought the fully leased 96K SF property from Thor Equities, which in turn purchased it from KBS in 2021. NXP Semiconductors has a lease on the property until 2027.
As part of the deal, the Resnick affiliate assumed a $30M Wells Fargo mortgage. The Resnicks, who reportedly own a large swath of the U.S. pistachio crop, also sell citrus fruit and wine, and operate a flower delivery service. The Wonderful Co. is a $5B privately held business, according to its website.
Newmark handled the transaction.
“350 Holger benefitted from strong competition among investors seeking a risk-off investment secured by investment grade tenancy,” Newmark Executive Vice Chairman and President of Western Region Capital Markets Steve Golubchik wrote to Bisnow over email. “Despite current market headwinds, the strong credit profile and R&D buildout generated strong investor interest.”
While much of the Bay Area’s office market has seen notable distress, Silicon Valley remains one of the metro’s bright spots in terms of investor interest and demand.
One of the largest transactions in recent weeks, a $222M all-cash deal in Sunnyvale, is one such example of deep-pocketed capital investors taking an interest in the asset class during a downturn.
UPDATE, NOV. 29, 4:31 P.M. ET: This story has been updated to include comments from Newmark.