San Jose office building bought at lower price

SAN JOSE — A vacant North San Jose office and research building was purchased for millions less than its prior sale price, documents filed on May 29 with the Santa Clara County Recorder’s Office show.

At 350 East Plumeria Dr., the two-story building was bought for $33 million by an affiliate of Paceline Investors, documents show. Galaxy Properties, the seller, paid $37.9 million in 2022.

Paceline Investors, which teamed up with a unit of New York Life Insurance to buy the building, landed $41.1 million in financing from Copia Lending at the time of its purchase, public documents show.

The company has been active in the Bay Area in recent years, acquiring office buildings in Alameda in 2021 and in San Jose in April of this year.

The reduced purchase price might allow Paceline Investors to offer prospective tenants a lease at an attractive rental rate.

The building totals 142,700 square feet, according to LoopNet. CBRE commercial real estate brokers Sherman Chan, Chris Shepherd, and Garrett Taylor are seeking tenants.

Tech company Netgear was a tenant at the time of the Galaxy Properties purchase in 2022.

In 2024, however, Netgear agreed to a lease to relocate its headquarters to 3553 North First St. The deal enabled Netgear to downsize its operations at a building that totals 89,400 square feet.

The reduction in the newly acquired building’s value suggests that it might suffer a decline in its assessed valuation. This outcome has implications for local government agencies and the services they provide.

Falling real estate values in a community can imperil a crucial revenue stream from property taxes for cities, counties, regional agencies, and school districts.

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This story was originally published June 1, 2026 at 11:54 AM.