Finance & Business World

Colliers International’s Investment Services Group said Monday it is offering for sale a Milpitas research and development building currently occupied by Seagate Technology.

The 77,200 square-foot facility, which includes 66,000 square feet of clean room, is located at 195 S. Milpitas Blvd. The seller is a local family trust.

Seagate recently announced its plans to relocate to an off-shore facility. The company said it will cease production at the Milpitas plant on Oct. 3. However, it is obligated to pay rent on the facility through April 2011.

“I think (the property) is perfectly positioned for a value-oriented investor to realize a tremendous amount of value that is ‘locked up’ in the real estate,” said Andy Zighelboim, senior vice president of Colliers in San Jose payday loans lenders. “The offering will provide the opportunity to re-lease a high-quality, state-of-the-art clean room at a significantly higher lease rate within a relatively short amount of time. The clean room alone would cost between $2,500 and $3,000 per square foot to replicate.”

The disposition assignment is being handled by Zighelboim, Michael Rosendin and Craig Fordyce of Colliers.

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