Large-scale purchase shifts ownership of Santa Clara tech property
Santa Clara officials and property watchers woke up to a significant ownership change this week as a London-based investment group announced a multi-campus acquisition that includes a prominent tech campus inside city limits. Documents filed Aug. 31 with Santa Clara County show Lone Star Fund paid $195 million for a Santa Clara campus on Mission College Boulevard, near Burton Drive and Wyatt Drive — part of a broader portfolio totaling 2.2 million square feet across six South Bay campuses.
The buying group says its purchase covers 50 buildings on roughly 140 acres spread across Silicon Valley’s so-called Golden Triangle, an area roughly bounded by Highway 101, State Route 237 and Interstate 880. Lone Star named Bay Area firms TMG Partners and Grove as operating partners for the newly acquired sites.
“We see significant opportunity in this portfolio given the strong tailwinds across the business landscape right now in Silicon Valley,”
Jerome Foulon, Lone Star’s global head of commercial real estate, expressed confidence in the local market and signaled the group’s intention to be an active owner in the region.
What was purchased and where it sits in the Valley
The transaction bundles a range of office and research properties, including a mix of mid-size and large campuses, a data center and hospitality and retail components. The filing identifies the following holdings in the package:
- Mission Park — 12 buildings totaling 500,300 sq. ft. on 33 acres. The site includes a 73,000-sq.-ft. data center, retail space and a 175-room hotel adjacent to tech facilities occupied by companies such as Nvidia, Intel and Oracle.
- Montague Square — six-building campus with 251,200 sq. ft. on 15 acres at Montague Expressway and North First Street in North San Jose.
- North First @ Orchard Station — six buildings on 17 acres, totaling 266,800 sq. ft. (addresses include 41 Daggett Dr.).
- Montague Oaks — eight buildings comprising 295,000 sq. ft. on 18.6 acres along River Oaks Parkway; the campus sits atop a key fiber hub.
- Zanker Place — four-building office center totaling 142,000 sq. ft. at 1920 Zanker Road, near the Google Brokaw campus and PayPal headquarters.
- Tasman Tech Center — a 14-building office and research hub totaling 736,800 sq. ft. on 47 acres in Milpitas.
Local implications for Santa Clara residents
For Santa Clara, the sale places a major tech campus under new out-of-area ownership. While the filing does not specify immediate redevelopment plans, the presence of a large data center, hotel and retail on the Mission Park site means future decisions by the new owner and operating partners could influence local traffic patterns, employment arrangements and the city’s tax base.
City planners and economic development officials typically watch such ownership changes closely because buyers may reposition properties to attract new tenants, carry out renovations, or change the mix of uses. Lone Star’s statement about seeing “significant opportunity” — and the appointment of regional operators TMG Partners and Grove — suggests an intent to actively manage and potentially upgrade the holdings.
Nearby companies and residents may also see ripple effects. The Mission Park campus sits adjacent to facilities occupied by large chipmakers and enterprise firms, and Montague Oaks’ location above a fiber hub positions that site as strategic for data-intensive tenants. Changes in building ownership and operations could influence lease terms, the arrival of new businesses, or construction activity — all of which carry short- and long-term impacts for traffic, housing demand and services in Santa Clara and neighboring communities.
Deal size and scope — at a glance
| Metric | Figure |
|---|---|
| Total square footage acquired | 2.2 million sq. ft. |
| Buildings | 50 |
| Acres | 140 |
| Santa Clara campus price | $195 million |
The filing provides a snapshot of a sizable transfer of commercial real estate in Silicon Valley. Residents and local officials will likely be monitoring the new ownership’s next steps, including any proposed renovations, tenant transitions or land-use requests.
Representatives for Lone Star, TMG Partners and Grove identified in county records did not provide additional details about immediate plans for the Santa Clara campus in the filing reviewed by WE NEWS. The transaction is part of a broader trend of institutional capital returning to the Bay Area commercial market, and it underscores Santa Clara’s continued role as a hub for research, data infrastructure and corporate campuses.
