A two-building advanced manufacturing complex has hit the market in South San Jose, seeking a big markup on the 20.5-acre site in the burgeoning industrial submarket compared with the price it fetched shortly before the pandemic took hold.
The 256,250-square-foot Vantage Point Industrial Park at 5325 Hellyer Avenue and 875 Embedded Way is fully leased to Teradyne, which designs and creates automatic test equipment, and Olympus Corporation of the Americas, a subsidiary of the Tokyo-based optical and digital tech manufacturer. CBRE began marketing the property for sale last week, Scott Prosser, one of its listing brokers, told The Real Deal. While it’s being marketed unpriced on an “as-is, where-is” basis, the pricing guidance — essentially the price CBRE and the sellers are aiming for — is $82.3 million, Prosser said.
The site is owned by a pair of Southern California-based limited liability companies with addresses that match Advanced Pain Medical Group, according to title service records and California business entities filings. The LLCs acquired it and 10 undeveloped acres next door in 2019 for about $55.3 million. At the end of March, they sold the undeveloped land to a joint venture of Oppidan Investment and Rockpoint for $15.7 million, a 293 percent increase compared with the $4 million acquisition price roughly two years earlier. The Oppidan-Rockpoint joint venture plans to build a 122,000-square-foot industrial project there.
Advanced Pain and Dr. Paul Johnson, who’s listed as the manager of both LLCs on California business entities filings, didn’t respond to requests for comment.
More than 1.3 million square feet of new industrial space is planned or approved within a three-mile radius of Vantage Point, according to CBRE’s offering memorandum. Another 437,000 square feet has been built and occupied there over the last five years, the memo said.
South San Jose has historically been known for its research and high-tech companies, but it’s poised to be transformed by the spillover of continuous demand for industrial properties in the nearby North San Jose, Milpitas and Fremont submarkets, Oppidan’s Ian Halker told The Real Deal in April.
Whoever ends up buying Vantage Point probably won’t be in any rush to redevelop. Teradyne’s lease on one of its buildings runs through December 2027, while Olympus’ term on the other doesn’t end until May 2035, the offering memo said. Olympus is adding new production and lab areas, warehouse space, offices and a break area to its facility, investing about $13 million of its own money into it, the memo said. The Pennsylvania-based manufacturer intends to occupy the property by the end of this year, spokesperson Jennifer Bannan said in an email.
Immediately east of Vantage Point is a two-building, 160,000-square-foot office and research complex that sold for about $64.3 million in November. The deal underlined how quickly property values are rising in South San Jose: Empire Square Group, its previous owner, paid $55.5 million to acquire it two years earlier. The New York-based firm sold it to a pair of LLCs whose addresses match that of Advanced Pain. The site is fully leased to defense contractor CAES and serves as its West Coast headquarters.
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Developer plans 122K sf industrial project in San Jose