After purchasing a 196,647 square-foot research and development asset in 2020, Exeter Property Group has sold the building for more than double what it was purchased at. According to public documents reviewed by The Registry, the San Jose building was acquired by an entity affiliated with Lafayette-based Cortese Investments for $103.8 million, or about $527 per square foot.
Located at 1710 Automation Parkway, the building features a mix of R&D and flex office space. The property is currently occupied by QuantumScape Battery, a San Jose-based tech company and battery manufacturer. The local company signed a lease for the property in 2021.
The property last traded hands in October of 2021 for $36.2 million, or about $184 per square foot. At that time, the property was newly vacant after San Jose-based Western Digital had moved out.
The building is near a variety of other tech-occupied properties, with companies including Supermicro, Qualcomm, Broadcom and many others. The asset also is within a short commute to both Interstates 101 and 880.
As the largest city in Silicon Valley, San Jose is home to a number of tech companies that have aided the market through the first quarter of 2022. According to a first quarter market report from Avison Young, sales in San Jose have remained consistently high throughout the first quarter of the year, with sales volume reaching $350 million. Additionally, the brokerage firm reported that the area recorded its first positive net absorption since the onset of the COVID-19 pandemic at just over 1 million square feet, while asking rental rates also increased 0.8 percent.