Menlo Park-based Lane Partners wasted little time in lading a major tenant at the North San Jose asset the company purchased at the end of 2017. Micron Technology, the Boise, Idaho-based global semiconductor enterprise will be taking all three buildings located on Holger Way in San Jose, a total of just over 561,000 square feet, in another sign that the Silicon Valley commercial real estate market continues to hold a special place for companies in this sector.
According to a report by the San Jose Mercury News, Micron will be making a move from Milpitas, where it occupied space at 590 Alder Drive and where it has approximately 600 employees. The company, which reported revenues of $26 billion in its last fiscal year, is poised for growth, and Silicon Valley will play an important role in that evolution.
“We are taking Micron to the next level,” said Sanjay Mehrotra, Micron Technology’s chief executive officer to the company’s employees at a recent event in Milpitas, according to the Mercury News report. “Micron is growing its presence globally. We will be moving to an exciting new facility.”
The property where Micron will be relocating was in the news recently, when Lane Partners acquired the three-building complex located at 110, 120 and 130 Holger Way, also known as known as HQ @first, for $225.5 million, or roughly $401 per square foot in December of 2017. The seller was Broadcom, which after its acquisition of Brocade decided to dispose of the asset.
The property was originally opened in 2010, and it was the corporate headquarters for Brocade Communication Systems. The building at 110 Holger Way covers four stories and is 124,767 square feet. 120 Holger is a 7-story building of 218,349 square feet. 130 Holger is another 7-story building with the same square footage. The property also has an option for a fourth tower, entitled up to 320,000 square feet. The property covers 9.7 acres of land, and it is located at the intersection of North First Street and Highway 237.
The campus complex has many of the same amenities that technology companies are looking to have in their office space. This includes outdoor barbeque and patio areas, a basketball court, strong fitness center/locker rooms, game room, a cafeteria than can hold in excess of 300 people and an expansive executive business center. There is a total of 1,897 parking spaces in the complex, as well.
The expansion into San Jose will allow the company to grow to 1,000 employees in the region. Most importantly, this location will elevate the company’s profile in the region and set it in a major submarket of Silicon Valley.
“We heartily welcome to San Jose an industry leader like Micron,” said San Jose Mayor Sam Liccardo in the Mercury News report. “While providing relief for hundreds of our residents pining for a shorter commute, Micron will further bolster San Jose’s brand as a global center for innovation.”
The company plans to gradually increase its presence in the new facility. The building at 120 Holger will be subleased initially and grow into the building as its operations in the region expand. Micron plans to start moving its employees by the end of the year in the other two buildings, expecting full occupancy of those buildings by early 2019. The company will also have its signage installed on the buildings shortly, making is presence in San Jose known to all.