L
ocal investors in Palo Alto have shown a keen interest in downtown office assets, recently acquiring a one‑story building at 578 University Ave. for $13.3 million. The purchase, led by South Bay executive Semin Valani, was filed on November 18 and financed with $9.3 million from Loan Oak Fund. Valani also holds stakes in neighboring properties at 567 and 555 University Ave. The 9,300‑sq‑ft office, marketed by Premier Properties as a residential‑real‑estate firm space, sold at roughly $1,427 per square foot—well below the pre‑pandemic rates that topped $1,900 per square foot in recent downtown deals.

    For context, the 250 Hamilton Ave building, bought in August, commanded $82 million ($1,979/sq ft). Earlier pre‑COVID transactions included 192 Lytton ($23.1 M, $2,551/sq ft), 530 Lytton ($117.5 M, $2,156/sq ft), 150 Forest ($26 M, $2,153/sq ft), and 385 Sherman ($138 M, $2,030/sq ft). In contrast, February 2024 saw a San Jose group led by Shoe Palace CEO George Mersho purchase a 325,200‑sq‑ft double‑tower complex for $34.2 million ($105/sq ft). Just months earlier, the same group bought a 157,500‑sq‑ft tower for $23.8 million ($151/sq ft).