Big San Jose battery maker site is bought for more than $100 million.
A big San Jose building leased to a tech company that makes cutting-edge batteries has been bought by Bay Area investors in a real estate deal that tops $100 million.
The just-purchased north San Jose building is occupied by QuantumScape Battery, which in 2021 leased the building to accommodate a major expansion for the maker of lightweight lithium-metal batteries.
Cortese Properties and La Fiesta Square, real estate entities that are both based in Lafayette, paid $103.8 million for the building, according to documents filed on May 4 with the Santa Clara County Recorder’s Office.
The building is located at 1710 Automation Parkway in San Jose and totals 196,600 square feet, according to a regulatory filing with the Securities and Exchange Commission in April 2021.
The purchase of the research and development site is a reminder that investors continue to hunger for buildings in Silicon Valley.
In particular, buildings that are suitable for, or leased to, tech, advanced manufacturing, or life science companies are particularly attractive to buyers, property experts say.
The group that bought the Automation Parkway building in San Jose is headed up by Stephen Cortese and Ann Cortese. The two individuals are principal executives with Cortese Properties and La Fiesta Square, which is a retail center in Lafayette, according to county property documents and state business records.
QuantumScape Battery’s lease began in December and was scheduled to expire in September 2032, SEC documents show.
The groups led by Stephen Cortese and Ann Cortese obtained a $45 million loan from Wells Fargo Bank to help finance the purchase of the north San Jose building, according to the county real estate documents.
In November 2020, QuantumScape orchestrated an initial public offering that raised $680 million and valued the battery company at $3.3 billion.
Quantum Scape states on its website:
QuantumScape is on a mission to transform energy storage with solid-state lithium-metal battery technology.
“The company’s next-generation batteries are designed to enable longer range, faster charging and enhanced safety in electric vehicles.”
The company is convinced that its technology will unleash wide-ranging changes in the battery sector, although commercial-level production still remains about two years away, QuantumScape said in a recent regulatory filing.
Thanks for staying up to date with batteriesnews.com. “We are developing our battery technology with the goal of beginning commercialization between 2024 and 2025,” QuantumScape said in an SEC filing on May 2.
We believe that our technology will enable a new category of battery that meets the requirements for broader market adoption.
The lithium-metal solid-state battery technology that we are developing is being designed to offer greater energy density, longer life, faster charging, and greater safety when compared to today’s conventional lithium-ion batteries.
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Big San Jose battery maker site is bought for more than $100 million, May 5, 2022
