Office and research building at 1251 McKay Drive in north San Jose. A big office and research complex in north San Jose has been bought by a real estate company, a property deal that enables the company to lease space from the new owner on a long-term basis.
SAN JOSE — A big office and research complex in north San Jose has been bought by a real estate company, a property deal that enables the company to lease space from the new owner on a long-term basis.
South Bay Development, acting through its affiliate McKay Ringwood San Jose, paid $58 million for a complex that totals four buildings, documents filed on Feb. 9 with the Santa Clara County Recorder’s Office shows.
Synaptics, which provides touchscreen controls for makers of mobile phones, notebooks and handheld computers, sold the buildings to the real estate developer.
Wells Fargo Bank provided a loan of $46.1 million to South Bay Development at the time of the real estate company’s purchase, according to the county property records.
The buildings involved in the property deal have addresses of 1109, 1151 and 1251 McKay Drive and 1140 and 1150 Ringwood Ct., county documents show.
The four buildings total a combined 231,700 square feet, according to information provided by commercial property listing services.
San Jose-based Synaptics and Campbell-based South Bay Development also struck a deal whereby the tech company would be able to continue to occupy space at the just-purchased property. The Synaptics world headquarters are located at 1251 McKay.
During the 12 months that ended in December 2021, Synaptics earned $142.5 million on revenue of $1.45 billion, according to the Yahoo Finance site. During the company’s 12-month fiscal year that ended in June 2021 $79.6 million on revenue of $1.34 billion.
The tech company agreed to lease offices in the property for 12 years, according to a document filed with the county. Synaptics intends to occupy about 115,000 square feet, the property records show. Synaptics also obtained an option to extend the term of the lease.
San Jose and Silicon Valley overall have become hotbeds for property purchases by investors who see a big upside in the region’s tech hubs. Some of these deals lead to big new development projects.
A few blocks away from the just-bought buildings, Bridge Development Partners has proposed construction of a vast industrial and business park totaling 719,400 square feet on sites that are along Qume Drive and Commerce Drive in San Jose.
In August 2021, Bridge paid $134 million for the north San Jose sites, then disclosed its development plans a few months later.
