Galvanize Real Estate, an arm of San Francisco-based global asset manager Galvanize, acquired a 302,000-square-foot industrial portfolio across four buildings in Milpitas for approximately $94 million. The deal matters because it signals institutional conviction in Silicon Valley industrial real estate at a moment when the region is positioning itself as an epicenter for physical artificial intelligence and robotics development. The buyer, founded in 2021 by billionaire Tom Steyer along with Katie Hall, formerly of Hall Capital Partners, paid about $311 per square foot, a meaningful step up from the portfolio's prior sale price.
The four buildings at 901, 1021, 1123 and 1151 Cadillac Court were constructed between 1991 and 1994. They offer 8,000 amps of available power, a requirement the source identifies as important for physical AI and robotics companies in the South Bay. The campus is 95% leased and sits near Interstate 880 and Highway 237. Newmark led sale negotiations for the former owner, DRA Advisors, which purchased the portfolio in 2024 for $75 million, or roughly $249 per square foot. That implies a per-square-foot increase of about $62, or roughly 25%, between the two transactions.
The evidence comes from a single full-text Bisnow report, which relies on a release from Newmark. Newmark Western Region Capital Markets Group Senior Managing Director Darren Hollak said 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 President of Western Region Capital Markets Steve Golubchik added that the Silicon Valley industrial market is seeing stronger leasing activity, declining vacancy and more demand from advanced manufacturing and AI-driven companies. The report also notes nearby tech employers including Tesla, Amazon, Seagate and Supermicro.
The broader market context supports the pricing. Industrial leasing activity in Silicon Valley spiked 60.4% in Q2 from the previous quarter, according to Newmark, while vacancy dipped to 6.2% on the strength of 1.4 million square feet of year-to-date net absorption. Recent nearby activity includes Supermicro leasing a 714,000-square-foot office campus in San Jose for AI infrastructure and manufacturing, Tesla converting former Model S and X lines in Fremont for its Optimus humanoid robot and leasing 375,000 square feet of R&D; space in Warm Springs, and Figure AI opening a nearly 99,000-square-foot robotics campus in San Jose in 2025.
The analysis is bounded by a single secondary source, so details such as financing terms, tenant mix, lease durations, cap rates, or the buyer's specific return expectations are not available. The 25% price increase over roughly two years is supported by the reported sale figures, but the dossier does not provide independent confirmation beyond the Newmark release and Bisnow reporting. What to watch is whether the southern I-880 corridor continues to absorb advanced manufacturing and AI-driven tenants at the pace implied by the Q2 leasing data, and whether the available power infrastructure at Cadillac Court translates into sustained occupancy and rent growth for the new owner.