I
n a move that could signal a turnaround for the beleaguered downtown San Jose office market, Riverpark Towers has changed hands. The 607,000-square-foot complex, comprising two high-rise buildings and a parking garage, is now owned by AEW Capital Management. Located at 333 West San Carlos Street and 300 Park Avenue, the property boasts stunning views of the Guadalupe River and surrounding open spaces.

    AEW Capital's acquisition comes as the Bay Area office market grapples with record-high vacancy rates, plummeting rents, and declining property values. The Boston-based investment firm has taken a long-term view, aiming to stabilize the property through strategic tenant placement and rent increases.

    Riverpark Towers' prime location near State Route 87, the Diridon train station, and Google's proposed transit-oriented neighborhood makes it an attractive asset for AEW Capital. The complex is also within walking distance of the Center for the Performing Arts and directly across from Adobe's headquarters.

    With a combined value of $307.3 million as of January 2024, Riverpark Towers presents a significant opportunity for AEW Capital to revitalize the property and capitalize on its prime location. At approximately 70% occupancy, the complex offers ample room for growth and expansion, making it an exciting addition to AEW Capital's portfolio.