According to an early morning report from Reuters, the Chinese technology conglomerate LeEco that came into the US market with much fanfare and a grand San Francisco event last October is selling its 48.6-acre site in Santa Clara that it purchased from Yahoo for $260 million. This is $10 million more than what it paid for the site in June of 2016.
The buyer is Chinese development company Genzon Group, which has been active in the Bay Area commercial real estate market. In March of 2015 the company purchased the 18-acre waterfront property in Burlingame called Burlingame Point with sights to build a Class A office complex catering to international technology enterprises.
The Santa Clara site, which is bounded by Tasman Drive to the north, where four buildings presently sit, Old Ironside Drive to the east and Patrick Henry Drive to the west is mostly vacant with some surface parking lots. The site is approved for a development up to three million square feet. It was planned to be the company’s North American headquarters with a promise to house 12,000 employees.
The land is in a prime location, in close proximity to the US Highway 101, the newly constructed Levi’s Stadium as well as Irvine Company’s mega project at Santa Clara Square. The Irvine Company announced last summer a slew of new tenants in its location. Next door at 3315 Scott Blvd., Realtor.com announced as its new headquarters.
LeEco has launched a concept electric car model with Faraday Future at CES 2016. In April of 2016, LeEco presented its very first model of its self-driving car named LeSEE Super EV at a press conference in Beijing, and it is often touted as a competitor to Tesla, although its range of products is much broader.
Since it purchased the Yahoo site, LeEco has been in the news with a number of negative reports, including reduced head-counts, pushed product launches and an uncertain relationship with Faraday Future.
At an event organized by The Registry in December of 2016, LeEco’s Vice President of Real Estate and Facilities for North America Dan Poritzky stated that the company was looking for a development partner in the deal and that it was nearing the announcement.