By Jon Peterson
Dallas-based Mohr Capital has placed on the market for sale the headquarters property of FormFactor in Livermore that totals 168,636 square feet. The potential pricing of this sale could be in the range of $35 million to $37 million, according to sources familiar with the property.
The owner of the property is selling the asset with the assistance of the San Francisco office of HFF.
Mohr purchased the five-building property in December of 2016 for $28,420,000, according to public records. Since then, one of the buildings, located at 7451 Longard Road, has been sold to an end-user located in the building, Livermore Software Technology Corporation, for $5,750,000.
“This property serves as the FormFactor headquarters for [its] R&D, warehouse/distribution and manufacturing space for North America. This tenant has occupied the campus for close to 20 years and has further committed to the property by recently extending their lease. It now has around 10 years remaining,” says Scott Pertel, a senior managing director for HFF. He and Alec Haley, an analyst with HFF, are both working on the sale.
FormFactor is a manufacturer of products used to test integrated circuits for the largest semiconductors in the world. These include Samsung, Intel, SK Hynix and Micron Technology. “FormFactor’s stock is up close to 85 percent in the last six months, with annual revenues eclipsing $500 million. This indicates tremendous operational performance and growth,” said Pertel.
The remaining four different buildings in the property are located at 7005 Southfront Road, 7401 and 7501 Longard Road and 501 Lawrence Road. The total site area of these locations is 11.29 acres. These assets were built in either 2001 or 2002. During the time that FormFactor has been in the space, the company has invested over $200 million to improve the buildings. The current lease of the property has 3 percent annual rent escalations.
The Livermore office/R&D market has strong market fundamentals. According to sources that track this market, Livermore has outperformed the greater Tri-Valley market in terms of vacancy rate. Livermore has a current vacancy rate of 2.1 percent compared to the Tri-Valley region, which stands at 5.5 percent. Livermore had reached a vacancy peak of almost 18 percent in 2009.