SAN JOSE, Calif. – Cushman & Wakefield announced today the firm represented both parties in the sale of a fully leased, 102,668-square-foot R&D facility in Milpitas (Silicon Valley), California. Empire Square Group, a private real estate investment firm based in New York City, acquired the modernized partial two-story property from a joint venture between certain affiliates of Westport Capital Partners LLC and Cannae Partners for $41.1 million.
Cushman & Wakefield’s Northern California Capital Markets group comprising Eric Fox, Steve Hermann, Adam Lasoff, Seth Siegel, and Ryan Venezia brokered the transaction.
“This was a very rare investment opportunity in Silicon Valley. The asset was 100% leased for a 15+ year lease term to a stable, credit tenant that is scheduled to provide strong cash flow for a considerable amount of time going forward,” said Eric Fox, Executive Managing Director. “The tenant plans to utilize the facility as its Silicon Valley headquarters. The facility is mission critical to its operation, and the tenant will be investing significant capital to create a state-of-the-art R&D facility. With the seller’s own improvement contribution made prior to sale, there has been substantial capital investment made into the property by ownership.”
Located at 1565 Barber Lane and situated on 5.53 acres, the facility is in a desirable location in Oak Creek Business Park in the northeast corner of Silicon Valley’s famed Golden Triangle, one of the valley’s most sought-after trade areas and home to some of the world’s most recognized companies. The location provides advantageous access to business centers and residential communities throughout Silicon Valley and the Bay Area, as well as outstanding proximity to highways and main thoroughfares and excellent transit access via the VTA light rail along nearby Tasman and the new Milpitas BART station.
The facility was originally developed in 1980 but underwent significant improvements in 1996, 2009 and again in 2019.