Milpitas property sells to real estate firm for $33 million
Older building could be revamped for tech or life sciences
MILPITAS >> A big building in Milpitas suitable for tech or life sciences operations has been bought by a veteran real estate firm from Chicago.
GEM Realty Capital paid $32.8 million for a building at 275 Hillview Drive, according to documents filed on June 17 with the Santa Clara County Recorder's Office.
Analog Devices, a tech company, sold the building, the county documents show.
Chicago-based GEM Realty Capital, the new owner, is working with San Francisco-based real estate firm Cannae Partners on the property's future, according to public records.
The new ownership group also obtained $33.9 million in financing at the time of the purchase from New York City-based Argentic Real Estate Investment, the county documents show.
Cushman & Wakefield, a commercial real estate firm, was handling the sale effort for the building, a marketing brochure shows. Cushman brokers Todd Beatty, Carrick Young, Kelly Yoder and Steve Horton helped to arrange the deal.
GEM Realty Capital is no stranger to investments in big Silicon Valley buildings. In 2020, GEM Realty paid $117.6 million for the 354room Hilton San Jose hotel in the city's downtown district.
The Milpitas building that GEM Realty bought totals 127,600 square feet and occupies 6.4 acres.
The 6.4 acres could provide plenty of land for a redevelopment project to possibly bulldoze the existing structure and replace it with a much larger modern building.
Analog Devices, a tech firm that is attempting to reduce its footprint in the Bay Area, had been using the site to manufacture semiconductors.
“This sale presents a rare opportunity to acquire a unique asset in a top-tier location,” Cushman & Wakefield stated in its marketing brochure.