One of the listing brokers, Colliers SVP Andy Zighelboim tellsGlobeSt.com that Seagate it would cost $2,500 per sf to replicatethe existing improvements in Milpitas and is paying a below-marketrent of $0.94 under a lease that it can – and presumably will –cancel after three years. "Current market rent is $1.35 per sf(NNN), so there's a lot of intrinsic value, especially consideringthe high-end improvements," Zighelboim says.

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With a lot of clean energy tenants looking for clean room spaceright now, Zighelboim says bidders could include investors as wellas clean-energy companies, possibly a company in the burgeoningsolar photovoltaic sector or the medical device space because thereduced time-to-market could present a competitive advantage.

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"An investor could hold it and realize the rental cash whilemarketing it for sale or for lease to a clean-tech tenant in yearthree," Zighelboim says.

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The going-in NOI is 882,000, stabilizing upon re-leasing at $1.3million in year four, according to the pro forma. "It's a value-addopportunity," Zighelboim says.

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Partnering with Zighelboim on the listing are fellow SanJose-based Colliers International brokers Michael Rosendin andCraig Fordyce. Property tours are underway. The offer deadline isAug. 26.

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Seagate and affiliates have occupied the entire building for 14years. The company told investors in July that it would vacate thebuilding in early October and consolidate production capacity inSingapore, where it recently completed a third media manufacturingfacility.

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"Singapore is a highly efficient and cost-effectivemanufacturing site for Seagate recording media operations, thanksto …the country's availability of utilities, favorable logisticsinfrastructure and a collaborative partnership in terms of localgovernance and regulations," a company official said when theproject was announced in 2006.

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