MILPITAS, CA—Beyond a simple lease renewal, a tenant added 90,000 square feet of new space in a vacant building within its existing premises, bringing it to fully leased status. Moreover, the lease is one of Silicon Valley's largest leases of the year.

Murphy Crossing was acquired in January 2017 by a joint venture between Northern California-based Embarcadero Capital Partners and New York-based True North Management Group. The property is a 368,000-square-foot five-building class-A office/R&D facility. The 216,000-square-foot lease agreement was with Renesas Electronics America (which recently acquired Intersil Corporation). The transaction expands to include all of 915 Murphy Ranch Rd. and extends the term of its existing lease on 126,000 square feet at 1001 McCarthy Blvd. and 933 Murphy Ranch Rd.

“We're thrilled with Renesas' decision to expand its footprint and extend its lease term at Murphy Crossing. Intersil has been an important tenant at the project for years and Renesas' consolidation with Intersil at Murphy Crossing will create a vibrant campus environment for the combined companies,” Carol Donnelly, Embarcadero Capital Partners' director of leasing, said while speaking for building ownership.

Newmark Knight Frank represented the owners in the transaction. NKF executive managing director Shawn Kellenberger, executive managing director Jeff Arrillaga and senior managing director Michael Saign represented building ownership. JLL represented the tenant.

“Murphy Crossing is a class-A R&D campus consisting of five buildings adjacent to Guadalupe river in the Oak Creek submarket of Milpitas, which is immediately adjacent to North San Jose,” Kellenberger tells GlobeSt.com. “The buildings offer steel and glass construction with an enormous outdoor amenity area, including a basketball court and volleyball court, and an onsite café.”

Built in 1994 by an owner/user (Octel), Murphy Crossing is situated on 20 acres and features high-quality design and construction, high ceilings, and large floorplates. The property is in the Route 237 Corridor, offering access to Interstates 880 and 680, US 101, and the VTA light rail system connecting to BART. Murphy Crossing features onsite amenities including a full-service cafeteria, outdoor collaborative areas and expansive lawns. Other tenants at the project include Aerohive Networks and SonicWALL.

The Peninsula-based private Embarcadero Capital Partners invests in development-constrained US markets. Last summer, Kellenberger, Arrillaga and Saign represented another Embarcadero Capital Partners/True North joint venture on a full-building lease with FireEye at 601 McCarthy Blvd., a 189,000-square-foot headquarters building across the street from Murphy Crossing.

“Embarcadero Capital Partners and True North have shown incredible vision in this submarket,” Kellenberger says. “They've matched that with their diligence and professionalism in deal-making to repeat outcomes in a highly successful manner.”

Instant Insights /

Renewal is One of Silicon Valley's Largest of the Year

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