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Single-Tenant Office

Quanta Computer, Inc. (QCT)

1010 Rincon Cir, San Jose, CA 95131

Listing Price: $55,200,000

Cap Rate
4.50%
Tenant Name
Quanta Cloud Technology USA, LLC
Years Remaining On Lease
12.0
Guarantor
Corporate Guarantee
Rentable SF
90,871
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$27.33

Investment Overview

NEW 12-YEAR LEASE The Subject Property is fully leased to Quanta Cloud Technology USA LLC (QCT), a wholly-owned subsidiary of Quanta Computer, Inc. ($38 Billion Total Revenue / $11 Billion Market Cap). QCT leased the Subject Property in 2014 and recently signed a new 12-year lease with average annual rent increases of 4.4% that includes a 13.5% rent increase in Year 4. The lease is guaranteed by the parent company, Quanta Computer, Inc., for the full 12-year term. Established in 1988, Quanta Computer is one of the world’s largest notebook manufacturers and key supplier to Apple Computer. It also produces goods for HP Inc., Facebook Inc. and Alphabet Inc.’s Google. Quanta Computer operates in a myriad of additional technology sectors including cloud computing, enterprise network solutions, mobile communications products, smart home products, and many more. QCT provides data center hardware and cloud solutions to 25% of the world’s server market, more than Dell and HP combined. SILICON VALLEY Technology: The large concentration of high-technology engineering, computer, and microprocessor companies around San Jose has led the area to be known as Silicon Valley. As the largest city in the valley, San Jose has billed itself as “the capital of Silicon Valley.” Area schools like the University of California, Berkeley; University of California, Santa Cruz; San Jose State University; San Francisco State University; California State University, East Bay; Santa Clara University, and Stanford University pump thousands of engineering and computer science graduates into the local economy each year. North San Jose Innovation District: Rincon de los Esteros, also known as Innovation Triangle, the Golden Triangle, the Innovation District, or simply as Rincon, is a vast district of San Jose, making up a significant portion of North San Jose. The district has one of the largest concentrations of high-tech company headquarters and campuses in Silicon Valley. Venture Capital: The Valley’s continued hold on the tech industry is highly attributable to the relative ease with which new office space can be developed. Available space is much more limited in other parts of the Bay Area and in San Francisco, as Prop M caps the amount of office space that can be built each year. In addition, Silicon Valley’s history of innovation has made the region a hotbed for venture capital investment. And with more venture capital originating from Silicon Valley each year, local entrepreneurs have easy access to investors who can help fund innovative ideas. AVERAGE ANNUAL RENT INCREASES OF 4.4% THAT INCLUDES A 13.5% RENT INCREASE IN YEAR 4 The new Lease offers 3.5% annual base rent increases in Years 1-3, a 13.5% base rent increase in Year 4, and 3.4% annual base rent increases in Years 5-12 of the Lease term and Amendments. BELOW MARKET RENT The contract lease rate on the Subject Property is approximately 10% below the market for similar Flex/R&D buildings in the area. $207,788 AVERAGE HOUSEHOLD INCOME WITHIN A ONE-MILE RADIUS The Property offers attractive demographics with an impressive average household income of $207,788 within a one-mile radius. NEW $475,000 ROOF UPGRADE The owner just completed a significant maintenance overhaul on certain deferred maintenance items. The materials used have a 20-year manufacturer warranty along with a 2-year contractor’s warranty. SAN JOSE This is the hub of the world’s leading technology companies including Cisco Systems, eBay/Paypal, Western Digital/Hitachi, IBM Corp., Adobe Systems, Inc., Brocade Communications, and Cadence Design Systems. North San Jose is the northern region of San Jose, California in Silicon Valley. As Silicon Valley maintains its hold on the tech industry both locally and nationally, the San Jose region is expected to see continued economic and population growth.

Investment Highlights

  • Single Tenant Office / R&D in a prime Silicon Valley location
  • New 12-Year Lease
  • 4.4% Average Annual Rent Increases
  • 13.5% Rent Increase in Year 4
  • Global Fortune 500 Company – Quanta Computer
  • Quanta Computer is one of the largest computer notebook manufacturers and a primary supplier to Apple, Google, Amazon, Facebook and HOP

Exclusively Listed By

Financing By

Single-Tenant Office

Quanta Computer, Inc. (QCT)

Listing Price: $55,200,000

Cap Rate
4.50%
Tenant Name
Quanta Cloud Technology USA, LLC
Years Remaining On Lease
12.0
Guarantor
Corporate Guarantee
Rentable SF
90,871
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$27.33

Investment Highlights

  • Single Tenant Office / R&D in a prime Silicon Valley location
  • New 12-Year Lease
  • 4.4% Average Annual Rent Increases
  • 13.5% Rent Increase in Year 4
  • Global Fortune 500 Company – Quanta Computer
  • Quanta Computer is one of the largest computer notebook manufacturers and a primary supplier to Apple, Google, Amazon, Facebook and HOP

Investment Overview

NEW 12-YEAR LEASE The Subject Property is fully leased to Quanta Cloud Technology USA LLC (QCT), a wholly-owned subsidiary of Quanta Computer, Inc. ($38 Billion Total Revenue / $11 Billion Market Cap). QCT leased the Subject Property in 2014 and recently signed a new 12-year lease with average annual rent increases of 4.4% that includes a 13.5% rent increase in Year 4. The lease is guaranteed by the parent company, Quanta Computer, Inc., for the full 12-year term. Established in 1988, Quanta Computer is one of the world’s largest notebook manufacturers and key supplier to Apple Computer. It also produces goods for HP Inc., Facebook Inc. and Alphabet Inc.’s Google. Quanta Computer operates in a myriad of additional technology sectors including cloud computing, enterprise network solutions, mobile communications products, smart home products, and many more. QCT provides data center hardware and cloud solutions to 25% of the world’s server market, more than Dell and HP combined. SILICON VALLEY Technology: The large concentration of high-technology engineering, computer, and microprocessor companies around San Jose has led the area to be known as Silicon Valley. As the largest city in the valley, San Jose has billed itself as “the capital of Silicon Valley.” Area schools like the University of California, Berkeley; University of California, Santa Cruz; San Jose State University; San Francisco State University; California State University, East Bay; Santa Clara University, and Stanford University pump thousands of engineering and computer science graduates into the local economy each year. North San Jose Innovation District: Rincon de los Esteros, also known as Innovation Triangle, the Golden Triangle, the Innovation District, or simply as Rincon, is a vast district of San Jose, making up a significant portion of North San Jose. The district has one of the largest concentrations of high-tech company headquarters and campuses in Silicon Valley. Venture Capital: The Valley’s continued hold on the tech industry is highly attributable to the relative ease with which new office space can be developed. Available space is much more limited in other parts of the Bay Area and in San Francisco, as Prop M caps the amount of office space that can be built each year. In addition, Silicon Valley’s history of innovation has made the region a hotbed for venture capital investment. And with more venture capital originating from Silicon Valley each year, local entrepreneurs have easy access to investors who can help fund innovative ideas. AVERAGE ANNUAL RENT INCREASES OF 4.4% THAT INCLUDES A 13.5% RENT INCREASE IN YEAR 4 The new Lease offers 3.5% annual base rent increases in Years 1-3, a 13.5% base rent increase in Year 4, and 3.4% annual base rent increases in Years 5-12 of the Lease term and Amendments. BELOW MARKET RENT The contract lease rate on the Subject Property is approximately 10% below the market for similar Flex/R&D buildings in the area. $207,788 AVERAGE HOUSEHOLD INCOME WITHIN A ONE-MILE RADIUS The Property offers attractive demographics with an impressive average household income of $207,788 within a one-mile radius. NEW $475,000 ROOF UPGRADE The owner just completed a significant maintenance overhaul on certain deferred maintenance items. The materials used have a 20-year manufacturer warranty along with a 2-year contractor’s warranty. SAN JOSE This is the hub of the world’s leading technology companies including Cisco Systems, eBay/Paypal, Western Digital/Hitachi, IBM Corp., Adobe Systems, Inc., Brocade Communications, and Cadence Design Systems. North San Jose is the northern region of San Jose, California in Silicon Valley. As Silicon Valley maintains its hold on the tech industry both locally and nationally, the San Jose region is expected to see continued economic and population growth.

Exclusively Listed By

Financing By

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