JV seeks big gain on flip of San Jose office leased to Apple supplier

Machine and Baudpont paid $32.6M for the property eight months ago, asking $55.2M

San Francisco /
May.May 12, 2022 12:30 PM
A photo illustration of 1010 Rincon Circle (Marcus and Millichap, iStock)
A photo illustration of 1010 Rincon Circle (Marcus and Millichap, iStock)

A joint venture between Machine Investment Group and Baudpont Capital is looking to flip a San Jose office complex that’s fully leased to Taiwan-based laptop manufacturer Quanta Computer.

The 90,870-square-foot property at 1010 Rincon Circle is on the market with an asking price of $55.2 million, according to a listing from brokerage firm Marcus & Millichap

Machine Investment and Baudpont acquired the property in a $32.6 million off-market transaction last October The roof of the complex has been upgraded since then, according to the listing. It was previously owned by Mehrdad Moshayedi, the co-founder of data storage company STEC, records show.

Quanta manufactures MacBooks for Apple. It has more than $19 billion in total assets and operates U.S. manufacturing facilities in California and Tennessee, according to Nikkei Asia.

The firm recently signed a 12-year lease extension for the property, the listing shows. It moved into the property in 2014. The lease extension has provisions for average annual rent hikes of 4.4 percent that includes a 13.5 percent rent increase in the fourth year.

Machine Investment Group focuses on “opportunistic” and distressed acquisitions, according to its website. The firm was launched in 2020 with its first acquisition: Stevens Creek Executive Park, a San Jose property that consists of 164,986 square feet of office space and entitlements for 582 apartments. Machine Investment paid $54 million for the 9.2-acre complex.

Last week, the firm announced that it had raised $312.7 million through Machine Real Estate Fund I.

Andy Kwon, Machine’s managing partner, did not respond to a request for comment. Marcus and Millichap’s John Glass and Evan Rose, the agents in charge of the listing, declined to comment.





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