San Jose, CA
1641 North First Street, San Jose, CA 95212
Meridian Completes its First Value-Add Project in San Jose, California
Meridian purchased a two-story, multi-tenant office building located at the northwest corner of the intersection of North First Street and Sonora Avenue in San Jose, California. This location experiences high demand due to its excellent access to transportation infrastructure, including three major freeways, San Jose International Airport, and public transportation. At the time of the purchase, the local economy was one of the most dynamic in the United States. After extensive market research, Meridian found that long-term growth patterns in the area suggested another 1 million Bay Area jobs over the next ten years. Meridian developed a plan to purchase, operate, improve, and resell the property as its first ever value-add opportunity as a newly formed company. When Meridian purchased the building, 85% of the 42,000 rentable square feet was leased. Meridian’s strategy was to renegotiate short-term expirations and lease up all vacancies by offering a variety of tenant improvement options and improving property management. Unfortunately, the dot com crash occurred in the middle of Meridian’s hold period. Meridian reacted quickly by adjusting the plan to meet the new market, working with the lender, and focusing on retaining existing tenants while also capturing many new tenants. Meridian sold the building for a return on investment in 2006.