Newport Beach, CA – Global private equity firm The Carlyle Group today announced it has acquired 4300-4400 North First Street in San Jose, California, two three-story Class-A office buildings consisting of 377,000 square feet from DivcoWest in an off-market transaction. Financial terms were not disclosed.

The property, located at the corner of North First Street and Highway 237 was originally built by Cisco Systems in 2001/2002, but never occupied by Cisco. Currently, 33% of the space is leased by IBM through 2017.

Carlyle Managing Director Paul Brady said, "4300-4400 North First Street is situated in a prime location in San Jose, well positioned for the supply/demand dynamics in the Silicon Valley. Since we were able to purchase the property at a discount to replacement cost, we can provide new space at lower rents than is required for new construction. There are very few options remaining for large tenants in the area who need a Class-A environment with great visibility and we are pleased to help meet this demand."

Funds for the transaction came from Carlyle Realty Partners V, a U.S.-based fund that makes opportunistic investments in the major metropolitan markets of Boston, Chicago, Denver, Los Angeles, New York, San Francisco and Washington, DC, in the office, hotel, industrial and retail sectors.