Apple has been aggressively pursuing its real estate interests out of Cupertino, and this year the computer manufacturer has squarely set its sights on North San Jose.
In yet another effort to grow its footprint in the region, Apple has just purchased the 70,000 square foot former manufacturing facility in North San Jose for $18.2 million, or $260 per square foot. The property is located at 3725 N. First Street, a couple of miles down the road from Apple’s n1 Campus site where it is currently working on a development plan with the City of San Jose. The transaction was first reported by the Silicon Valley Business Journal.
The seller of the facility was a semiconductor company Maxim Integrated Product.
In August of this year, Apple had purchased the 43-acre development parcel known as the “n1 Campus” in North San Jose. That site is located at 2347 North First Street, in very close proximity to a 291,000 square-foot 101 Tech building the company subsequently purchased from its landlord, San Francisco-based Ellis Partners for $165 million.
In Sunnyvale, Apple had also leased up the entire pre-constructed 777,000 square foot campus at Central & Wolfe from Landbank (reported first by The Registry), which it subsequently was looking to purchase from the developer. Ultimately, Apple had decided not to complete the purchase allowing San Francisco developer Jay Paul to enter into a bid with two other developers to buy it.
According to a recent, third quarter Silicon Valley market view snapshot from CBRE, the office market in North San Jose has the highest vacancy of any sub markets in Silicon Valley at 14.1 percent. This is primarily driven by Class B vacancy that sits at 22.8 percent, according to the report. On the R&D side, the vacancy is at 11.1 percent, which is above the market average of 7.6 percent, and second only to South San Jose at 17.7 percent.