SAN JOSE — A veteran Bay Area real estate firm has bought several buildings, located at sites in San Jose, Fremont, and Milpitas, in a deal that highlights the draw of advanced manufacturing and tech tenants.
Peninsula Land & Capital acquired the office and research buildings in multiple transactions with seller DRA Advisors, according to documents filed with officials in Santa Clara County and Alameda County.
Palo Alto-based Peninsula Land & Capital paid a combined $142 million for the buildings in Silicon Valley, the property records show.
“We just see good value in research and industrial buildings in good locations,” said Roger Field, a principal executive with Peninsula Land, which is a commercial real estate investment firm.
The buildings involved in the deals and the prices:
— $87.7 million for a group of south San Jose buildings with addresses ranging from 6311 through 6351 San Ignacio Ave. Together, these buildings total at least a combined 331,400 square feet, according to property listing services.
— $23.2 million for a two-building complex in Milpitas building with an address of 223 through 237 S. Hillview Drive. The buildings together total about 100,000 square feet.
— $16.7 million for a Fremont building at 3481 and 3501 W. Warren Ave. The building totals 68,700 square feet.
— $14.5 million for a Fremont building at 2800 Bayview Drive. The building totals about 59,000 square feet.
“All of the buildings have tenants and they all accommodate advanced manufacturing types of uses,” Field said.
One of the buildings serves as the headquarters of a maker of advanced batteries.
Enovix is in the West Warren building, which accommodates the company’s head offices, research activities, and battery manufacturing operations in Fremont.
DRA Advisors, a New York City-based private equity firm, was the seller in the deals, according to the county documents. Peninsula Land and DRA both acted through affiliates. Westcore had an ownership interest.
The deals show that Silicon Valley remains a hot ticket for property investors even in the face of the economic uncertainties and challenges unleashed by the coronavirus.
“We are seeing a lot of demand for these buildings that are suitable for companies involved in high-end manufacturing,” Field said.