T
he Pruneyard office towers in Campbell have been sold at a significantly discounted price, highlighting the weakness of the Bay Area's commercial real estate market. PSAI Realty Partners acquired the three-tower complex for $54 million through an all-cash deal, according to documents filed with the Santa Clara County Recorder's Office.

    The 365,000-square-foot office complex, located at 1901 South Bascom Avenue in Campbell, was purchased at a price that is 65% less than its estimated value of $154.8 million as of January 2024. This represents a decline of 62% from the $141.5 million purchase price in 2019, when Oaktree Capital Partners and Ellis Partners acquired the property.

    The Pruneyard Towers' value has plummeted to about one-third of its recent worth, reflecting the economic impact of coronavirus-related business shutdowns in 2020. The lockdowns may be over, but employees are returning to offices at a slow pace, contributing to high vacancy levels and low rents in the Bay Area.

    The complex consists of Tower One (18 stories, 119,000 square feet), Tower Two (single-story, 119,000 square feet), and Pruneyard Place (six stories, 127,000 square feet). The sale is a sign of the challenging office market conditions in the region, which have also led to foreclosures due to delinquent loans.