Seagate Fremont campus. Picture courtesy of CommercialEdge
Madison Capital Group has acquired a 575,775-square-foot R&D campus in Fremont, Calif., The Actual Deal reported. Onerous drive producer Seagate Expertise offered the asset for $260 million.
The property, a former Solyndra manufacturing plant, initially got here on-line in 2010 at a value of $300 million. At the moment, the corporate obtained a $535 million federal mortgage assure to develop the property. A 12 months later, Solyndra filed for chapter. In 2013, Seagate bought the asset for $90.3 million, a 3rd of its preliminary value.
After the acquisition, the power underwent a $200 million capital funding in 2016. The redevelopment plan included the transformation of the plant into an R&D/superior manufacturing campus.
Located on 30.1 acres, the LEED Gold licensed facility encompasses a two-story and mezzanine constructing and contains greater than 100,000 sq. toes of unpolluted room and laboratory build-out, a two-level workplace house part, on-site lounge and convention room, heavy energy and MEP infrastructure. The property additionally contains 590 parking areas, 20 dock roll-up doorways and 10.1 undeveloped acres for potential growth. Seagate stays the only real tenant as a part of the sale-leaseback transaction, in response to the San Francisco Enterprise Instances.
The Fremont campus at 47488 Kato Highway has entry to interstates 880 and 680. The Silicon Valley property is 12 miles from San Jose, Calif., and a few 43 miles from San Francisco. Company neighbors within the space embody Tesla, FedEx, DHL, Amazon and Siemens, amongst others.
Madison Capital, which owns and manages $3.2 billion in property, has 4 extra industrial properties within the Bay Space, together with the historic Ford Level constructing, now a 517,000-squre-foot R&D industrial facility in Richmond, Calif. The corporate, alongside Meadow Companions, paid $103.7 million for the asset final 12 months.
Bay Space R&D demand takes hit
Regardless of financial uncertainty, asking costs remained flat in Silicon Valley within the first quarter of 2023, in response to Kidder Mathews’ newest report on the R&D market. Nonetheless, layoffs within the tech sector have contributed to a lower in tenant demand and a rise in market emptiness, from 7.9 % within the fourth quarter of 2022 to eight.7 % the following quarter.
The Kidder Mathews report exhibits that, regardless of a lower in transaction quantity in sectors akin to biotech, {hardware} and medical gadgets, there nonetheless are particular services which can be wanted, together with properties that characteristic clear rooms, heavy energy and different specialised laboratory enhancements.
