CIP Real Estate has completed the acquisition of Tully Business Center, a small-bay industrial park in San Jose, California, for $40 million.
The property spans 143,221 square feet and includes six single-story buildings, which house 81 industrial and R&D units. These units range in size from 500 to 5,000 square feet, each equipped with grade-level loading. This acquisition enhances CIP Real Estate’s portfolio with high-quality light industrial space in a key location.
Eric Smyth, CEO of CIP Real Estate, expressed enthusiasm about the acquisition, noting, “We are pleased to add this distinctive property to our portfolio due to its size and prime location in San Jose. This investment strengthens our presence in one of Silicon Valley’s most robust industrial markets.”
San Jose is a critical hub for “physical tech” within Silicon Valley, with industrial property demand remaining high and vacancies below 2.7%. The city has also been recognized for its high quality of life, ranking fourth in the nation by U.S. News & World Report, making it an attractive area for both living and working.
Located at 1310-1460 Tully Road, Tully Business Center benefits from proximity to major freeways, including 101, 280, 680, and 880, offering convenient access to the greater San Francisco Bay Area. CIP Real Estate’s other properties, Cabot Business Park and Bayside Tech Park, are situated nearby in Hayward and Fremont.
The project is currently 92% occupied, with the largest tenant being an aerospace machine manufacturing company. CIP Real Estate plans to invest over $750,000 in property improvements, focusing on rebranding and upgrading vacant suites to “ready to lease” condition.
The seller, Dollinger Properties, was represented by the Colliers team of Andy Zighelboim and Kevin Moul.
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By Proptechbuzz
By Ravi Kumar
