New York-based investor Madison Capital may have bigger plans for Seagate Technology Holding’s research and development campus in Fremont, new filings with the city suggest.
The firm, which bought Dublin, Ireland-based Seagate’s (NASDAQ: STX) campus for $260 million in May, has proposed subdividing the 30-acre property at 47488 Kato Rd. into two separate parcels, according to an application submitted to the city of Fremont September 13.
Seagate’s campus includes its 575,000-square-foot research and development building, which it had occupied since 2014, as well as a close to 11-acre swath of undeveloped land that makes up the eastern portion of the property.
The application notes Madison Capital has yet to propose new uses for the site and does not specify the size of either of the two parcels it is seeking to create. Madison Capital could not immediately be reached for comment Thursday, but I will update this article if I hear back.
The Business Times reported when Seagate’s campus first went up for sale at the end of last year that its new owner would be acquiring both the research and development building, which Seagate offered up in a sale-leaseback deal, as wells as the vacant land, which is a possible development opportunity.
Seagate’s campus is zoned for tech industrial, which permits uses like research and development, according to the city of Fremont, which said it had not yet heard from Madison Capital as to its plans for the campus beyond the proposed subdivision. The city’s 18.9-million-square-foot research and development market tallied a 4.1% vacancy rate in the second quarter of this year, according to data from real estate services firm Cushman & Wakefield.
Seagate agreed to lease the campus back for 10 years with an option to extend its tenancy up to 20 years, according to Cushman & Wakefield and Cresa Partners, which represented Seagate in the sale.
