By Meghan Hall
Headway Technologies, a data storage company, has expanded its holdings in Milpitas. In a transaction that closed at the end of July, Headway Technologies purchased an 11.4-acre campus for $31.2 million, not far from its current headquarters. The seller was Orinda Equity Partners.
The Mercury News was the first to report the transaction.
The property, located at 461-631 S. Milpitas Drive, totals 161,000 square feet of space. Headway Technology’s current headquarters, is located less than a block away along S. Hillview Drive. Both assets are close to downtown Milpitas and are situated between Interstates 680 and 880. Numerous other businesses, from Cisco to Acme, are within the vicinity of the properties.
Headway Technologies, an affiliate of TDK Headway Technologies, was established in Milpitas in 1994. According to its website, it employs 800 people in engineering, manufacturing and administration roles at its current Hillview Drive location. The firm primarily focuses on developing technology-based, storage products.
Located just across the bay from San Francisco, Milpitas has become increasingly attractive to companies looking to expand their footprint in an equally accessible, but more affordable market. In April of this year, Empire Square Group, a private real estate investment firm based in New York, acquired a modernized research and development facility on Barber Lane for $41.1 million. Earlier in the year, in February, a joint venture of Soma Capital Partners and Timbercreek Asset Management acquired the Murphy Crossing campus for $130 million. The campus spans 368,000 square feet and 20.5 acres.
Other major technology companies have moved into Milpitas as well. Apple and SF Motors have both taken space at the McCarthy Creekside Center, and Amazon has grown steadily, taking hundreds of thousands of square feet at under-construction developments in Milpitas. This past spring alone, the e-commerce giant took 388,240 square feet of space at Bridge Development’s Bridge Point Silicon Valley, as well as 343,000 square feet at the McCarthy Creekside Center.