Duke Realty affiliate pays 33% more for Milpitas campus than 2020 price

An affiliate of Duke Realty paid $60.5 million for a tech campus by the Nimitz Freeway in Milpitas, a third more than the seller bought it for two years ago.

The affiliate bought the three-building tech park on 14 acres on Sycamore Road from Vertical Ventures, the Mercury News reported. The properties, at 475, 501 and 525 Sycamore Road, are part of the Oak Creek Business Park.

Vertical paid $45.5 million for it in 2020. At least one of the buildings was renovated under Vertical’s ownership.

Indianapolis-based Duke, which specializes in owning and developing e-commerce, logistics, industrial and research campuses, paid for the property in an all-cash deal.

North San Jose and Milpitas have become more popular with real estate investors and developers. Duke Realty previously bought a building at 2256 Junction Avenue in north San Jose for redevelopment. The firm has proposed a 305,800-square-foot project that would replace the 141,300-square-foot building on the 13.7-acre site.

In October, Washington Holdings paid $170 million for a 14-building campus in Milpitas. The company also bought three office and research complexes in the bordering north San Jose over the past four years.

Also last October, Amazon bought the 395,335-square-foot Metro Corporate Center at 1001 South Milpitas Boulevard and another campus at 691 South Milpitas Boulevard for $123 million.

Less than 10 miles away from the Sycamore Road property, the Coleman Highline tech campus might be getting a large office building that can accommodate more than 1,000 workers. The 290,000-square-foot office building is being proposed for the 4.5-acre lot at 1185 Coleman Avenue, just west of the Norman Y. Mineta San Jose International Airport.

Read more

San Francisco

Owner of Emeryville office complex plans pair of life science projects there

[MN] — Victoria Pruitt