SAN JOSE, Ca., January 25, 2018 – Cushman & Wakefield has been retained as exclusive brokerage firm in the marketing and sale of 408 East Plumeria Drive, San Jose, CA, a 58,289 square foot office/R&D building 100% leased to Foxconn Interconnect Technology Limited (“FIT”), a wholly-owned subsidiary of Foxconn, the world’s largest contract manufacturer.
Cushman & Wakefield will represent Montague Business Center Owner, LLC, a partnership between Vertical Ventures, LLC and an affiliate of Atlantic Creek Real Estate Partners, LLC, in the sale.
The building is located in the heart of Silicon Valley and has recently undergone an extensive $7.5 million external and internal renovation. FIT has committed to a 7.5 year lease term at the building through August 2026 and has invested more than $3 million of its own capital into the facility. FIT is expected to utilize the facility to support its strategic initiatives with its many clients throughout Silicon Valley, including Apple and Google.
Mr. Eric Fox, Executive Managing Director, Cushman & Wakefield, said the property is one of the premier R&D/office facilities located in the prestigious North First Street Corridor submarket of North San Jose.
“The proximity of the building to other corporate residents and the rising interest in San Jose from the burgeoning tech community is a major drawcard for investors in the sale of this building,” Mr. Fox said.
Nearby corporate residents with significant operations include Cisco, Samsung, Google, and Broadcom. The asking price for the investment is US$27.5 million, approximately a 5.9% cap rate on first-year projected net operating income.