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February 13, 2018

Real Estate Roundup: Nio building trades hands, storage company takes over South side development site

Silicon Valley Business Journal

Janice Bitters

The Silicon Valley Business Journal is kicking off a new column aimed at providing a fast and easy-to-read roundup that keeps track of the flurry of interesting transactions happening throughout the Valley, including ones that might traditionally end up flying under the radar.

This, the inaugural real estate roundup column, focuses first on San Francisco-based SPI Holdings, which last week picked up a fully leased North San Jose building for $30.2 million.

CoStar records show that the seller, Newport beach-based KBS Realty Advisors, originally purchased the two-story R&D building at 3200 N. First St. in 2005 for $25 million. Back then, the property was fully leased to network infrastructure and telecommunications company, Allied Telesis, which was then known as Allied Telesyn.

But since 2015, the building has been fully leased to NIO, formerly known as NextEV, which designs and develops electric, autonomous cars. Kidder Mathews' Skip Whitney, Eric Bluestein and Rodney Moreschini represented Nio in securing that lease. CBRE's Christian Marent and Bob Steinbock represented the then-building owner KBS, past Business Journal reporting shows.

Eastdil Secured was the dual agent in last week's deal, according to CoStar records. Representatives from SPI did not respond to a request for comment Monday.

While NIO's global headquarters is in Shanghai, the 4.7-acre North San Jose property adjacent to Broadcom's Zanker Road office serves as the startup's U.S. headquarters and its software development center, led by former Cisco Systems technology chief Padmasree Warrior.

NIO employs about 450 people at its San Jose location, but its products haven't yet hit the U.S. market. Even so, the startup last year raised $1 billion in new funding and expressed interest in being part of a slew of new driverless transit pilot projects run by the city of San Jose.

City officials late last year wouldn't disclose whether the company had made the final cut for any of its upcoming driverless transit pilot projects that are slated to get rolling this summer.

Here's a rundown of the details on the 3200 N. First St. deal:

Date: 2/07/2018
Price: $30.2 million
Seller: GK North First St. LLC, associated with Newport Beach-based KBS Realty Advisors
Buyer: SPI 3200 N First LP, associated with San Francisco-based SPI Holdings
Square feet: 85,017 square feet; $355 per square foot

For the full story, go to Silicon Valley Business Journal.

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