Galvanize Real Estate, an arm of San Francisco-based global asset manager Galvanize, acquired an industrial portfolio spanning 302K SF across four buildings in Milpitas for approximately $94M.
Galvanize, founded in 2021 by billionaire Tom Steyer, along with Katie Hall, formerly of Hall Capital Partners, paid about $311 per SF. DRA Advisors purchased the portfolio in 2024 for $75M, or roughly $249 per SF.
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The four buildings at 901, 1021, 1123 and 1151 Cadillac Court were constructed between 1991 and 1994 and have 8,000 amps of available power, an important requirement for physical artificial intelligence and robotics companies in the South Bay.
The campus is 95% leased and sits near Interstate 880 and Highway 237, according to a release from Newmark, which led sale negotiations for the former owner.
“Cadillac Court sits in one of Silicon Valley’s most established industrial corridors, surrounded by leading employers, retail amenities and transportation infrastructure that continue to attract and retain high-quality tenants,” Newmark Western Region Capital Markets Group Senior Managing Director Darren Hollak said in a release.
Industrial leasing activity and demand along the southern I-880 corridor have surged in recent years as the region transforms into the epicenter of physical AI and robotics development.
“The Silicon Valley industrial market is seeing stronger leasing activity, declining vacancy and more demand from advanced manufacturing and AI-driven companies,” Newmark President of Western Region Capital Markets Steve Golubchik said in the release.
Nearby tech companies include Tesla, Amazon, Seagate and Supermicro, which earlier this year leased a 714K SF office campus in San Jose to house its growing AI infrastructure and manufacturing operations.
Tesla, meanwhile, said in an earnings call in January that it is converting former Model S and X manufacturing lines at its Fremont factory into production lines for its Optimus humanoid robot. Tesla leased 375K SF of research and development space in Fremont’s Warm Springs district to advance its AI efforts. A bit farther south, Figure AI in 2025 opened a nearly 99K SF robotics campus in San Jose.
Industrial leasing activity in Silicon Valley spiked 60.4% in Q2 from the previous quarter, according to Newmark. Vacancy, meanwhile, dipped to 6.2% on the strength of 1.4M SF of year-to-date net absorption.
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