Newmark Facilitates Sale of Quanta Cloud Technology’s Global Headquarters in San Jose, California

June 12, 2024 9:00 AM

Newmark[1] announces it has arranged the sale of 1010 Rincon Circle, a 90,871-square-foot, state-of-the-art R&D facility in San Jose, California. The property is 100% leased to Quanta Cloud Technology (“QCT”), a publicly traded world leader in data center and cloud technology. The property serves as its U.S. headquarters location.

Newmark Executive Vice Chairman and President, Western Region Capital Markets Steven Golubchik, Vice Chairmen Edmund Najera, Senior Managing Director Jonathan Schaefler and Managing Director Darren Hollak represented the seller, Machine Investment Group, in the sale to the buyer, funds managed by Blue Owl Capital.

“1010 Rincon offers a prime opportunity for a durable cash flow stream, secured for 10 years by a leading AI server company within this state-of-the-art R&D facility,” said Golubchik. “The San Francisco Bay Area, renowned for its technological innovation, has seen a surge in demand for AI-driven facilities. This trend underscores the region’s role as a hub for cutting-edge advancements and positions properties like 1010 Rincon at the forefront of commercial real estate opportunities.”

A leading partner of Nvidia, Google Cloud, Sony and Amazon Webservices, QCT specializes in the design, engineering and manufacturing of server, storage and networking products. QCT aims to deliver high-performance, scalable and cost-effective cloud infrastructure to meet the demands of modern data centers, cloud computing and enterprise IT environments.

Situated in the Golden Triangle of the Silicon Valley, 1010 Rincon is ideally located to service QCT’s client base throughout the region and is surrounded by some of the world’s most recognizable companies, including Google, Microsoft, Samsung, Dell and Johnson & Johnson. The property also offers convenient access to executive and employee housing via a two-minute drive to both the 101 and 880 Freeways. Building features include an expansive auditorium and cafeteria, multiple loading docks, data center infrastructure and advanced AI testing facilities.

In the past 12 months over 1,200 Bay Area AI companies have received $31.8 billion of VC funding, or just over 50% of the national share, according to Newmark Research. AI companies leased 2.3 million square feet in leases over 20,000 square feet in 2023 throughout the Bay Area, with 60% of that space in Silicon Valley.

[1] Dba Newmark Knight Frank in California

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ended December 31, 2023, Newmark generated revenues of approximately $2.5 billion. As of March 31, 2024, Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 7,600 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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