SAN JOSE — Santa Clara County struck a deal to lease two nearly empty North San Jose office buildings and an adjacent retail hub, a real estate filing on Oct. 18 shows.
The county signed a 30-year lease for eight-story office buildings at 1650 and 1700 Technology Drive and a retail center at 90 Skyport Drive, documents show. The lease is slated to begin sometime in early 2029 “after extensive renovation of the two office buildings,” Bay Area real estate firm TMG Partners stated.
TMG Partners and New York City-based investment company KKR teamed up to pay $75.5 million for the office and retail complex, according to county documents.
Renovation of the offices is financed through a construction loan of up to $230 million the county provided to the TMG and KKR alliance, according to a deed of trust filed on Oct. 18.
Each office building totals approximately 194,300 square feet and the adjacent retail center totals 42,000 square feet, according to commercial property databases.
“We’re pleased to support the County of Santa Clara in their consolidation at Skyport Plaza, which will provide a more efficient and modern experience for their employees,” TMG Partners Co-Chief Executive Officer Ben Kochalski said.
Santa Clara County also has an option to buy the sites, according to TMG and KKR.
“By entering into a long-term lease at Skyport Plaza, the county will be able to transition from aging facilities, operate more cost-effectively, and reduce long-term costs to taxpayers,” County Executive James Williams said.
The county didn’t immediately disclose which existing offices it might relocate and consolidate.
The Technology Drive and Skyport Drive office and retail complex is just two miles from the county’s principal administrative offices at North First Street and West Hedding Street.
Santa Clara County opened the western wing of its 70 West Hedding St. administrative center in 1961. In recent years, the county moved its Recorder’s Office and Assessor’s Office out of the offices to more modern buildings near the corner of North First and West Tasman Drive.
“Our county workforce delivers essential services to our community every day, and we continue to identify ways to consolidate and enhance our facilities portfolio to better support that work,” Williams said.
The Skyport Plaza location has attracted buyers of late.
The just-purchased office and retail sites are adjacent to an office building at 1600 Technology that Goodwill of Silicon Valley bought in January 2025 for $17 million as its new headquarters and a hub for nonprofits.
Open spaces and gathering areas next to office buildings at 1700 (left) and 1650 (right) Technology Drive in North San Jose, seen on Oct. 16, 2026. (George Avalos/Bay Area News Group)
Retail and restaurant spaces at 90 Skyport Drive in North San Jose, seen on Oct. 16, 2026. (George Avalos/Bay Area News Group)