Local Property News | Posted by Zarni Kyaw
A famed developer from Japan has bought a big tech campus in north San Jose in a head-spinning Silicon Valley mega-deal valued at $429 million.
Mori Trust, a Japan-based developer and real estate investor that has begun to purchase properties in the United States, is the new owner of the San Jose tech campus, according to several sources with knowledge of the transaction.
The campus, which is fully leased to Micron Technology, was bought on March 11 for $429 million in cash, Santa Clara County property records show.
The deal is believed to be Silicon Valley’s largest property purchase so far in 2019.
“At a high level, this deal shows the interest on the part of global investors in Silicon Valley, the world’s premier technology market,” said Eric Fox, executive managing director with Cushman & Wakefield, a commercial real estate firm.
The deal also underscores the growing strength of the north San Jose market, which has begun to attract a steady stream of tech company leases and property purchases, as well as an influx of dollars from realty investors.
“This really speaks to the success of north San Jose and everything that is going on there,” Fox said.
The complex consists of 604,000 square feet of offices and a multi-level parking garage.
It is located on Holger Way near the interchange of State Route 237 and Zanker Road. In July 2018, Micron Technology struck a deal to rent the entire complex.
At the time of the lease, Micron had 600 employees in nondescript Milpitas buildings and anticipated it would move about 1,000 employees into the striking new San Jose offices, which sport prominent Micron logos.
Over the 12 months that ended in November, Boise, Idaho-based Micron earned $14.75 billion on revenue of $31.5 billion, according to the Yahoo Finance site.
The company is a powerhouse in providing chips for an array of uses, including mobile devices, artificial intelligence and other fast-expanding applications such as autonomous vehicles.
Ref: Property Report
