SAN JOSE — FH One Investments, acting through an affiliate, bought the Synaptics headquarters campus for $29.5 million, according to documents filed Thursday at the Santa Clara County Recorder’s Office.
Located at 1109 and 1151 McKay Ave. in north San Jose, the property’s most recently reported assessed value was $34 million.
“Our investment philosophy centers on acquiring unique assets when market conditions create attractive entry points,” said Daria Hosseinyoun, president of FH One Investments, which is based in Sausalito.
In a further attractive component of the deal, Synaptics is remaining as a tenant in the building, which totals 111,000 square feet. Newmark, a commercial real estate firm, arranged the property purchase.
“Given its long-term lease, we are able to take a long-term view and acquire an irreplaceable property at valuations that will prove compelling as the technology sector continues to evolve,” Hosseinyoun said.
Slumping property values can unleash effects that extend beyond the balance sheets of real estate owners. Property taxes provide a vital revenue stream for many public agencies.
However, weaker values can attract investors such as FH One that can then seek lower rents. The lower rents could in turn entice tenants, bringing jobs into a city.
FH One has been busy in recent weeks buying office buildings at attractive prices.
In mid-June, an FH One affiliate paid $13 million for a Concord office building that totals 174,000 square feet.
FH One appears to be pursuing a classic buy low and sell high strategy.
“This acquisition, along with our recent Concord purchase, reflects our belief that now is the optimal time to secure premium assets that will benefit from the inevitable market recovery,” Housseinyuon said. “We’re building a portfolio of irreplaceable properties that technology companies will always need.”