Technology development company Synaptics has sold its San Jose headquarters, closing on a $58 million deal to dispose of four buildings on February 9th. According to public records sources familiar with the deal, the buyer of the property is South Bay Development Company. The firm plans to make upgrades to parts of the asset before putting it on the leasing market.
The properties are located at 1109-1251 McKay and 1140-1150 Ringwood Court. According to a recent SEC filing, Synpatics and South Bay Development entered into a purchase and sale agreement at the end of November. As part of the deal, Synaptics will enter a lease agreement and will lease back 1109 and 1151 McKay for 12 years. Synaptics has the option to extend the lease for one, seven year-term. The company will occupy about 115,000 square feet of space.
“We are looking at this investment on a long-term basis. It’s our opinion that much of the leasing activity in our region will not pick up strongly for a while, which could be as much as three years,” says Mark Regoli, a partner with South Bay Development. However, Regoli does think that the work-from-home environment will not last forever. “At some point in the future there will be strong rental demand from tenants to have their employees back in the office,” he added.
In all, the buildings total about 231,700 square feet and sit on 13.2 acres of land. The property is located between Interstates 680 and 880, near other companies such as Frito Lay San Jose, Apria Healthcare, Rani Therapeutics, Amazon Fresh and others. A shopping center anchored by H Mart San Jose and Sprouts is also not far away.
South Bay Development Company has been dealing in Silicon Valley real estate since 1978. The company has “millions” of square feet in development and building acquisitions, according to its website. Its portfolio also includes 2400 Mission College in Santa Clara, which totals 300,000 square feet, Orchard Parkway in San Jose, which totals 99,000 square feet, and Creekside in Campbell, Calif., which includes 180,000 square feet.