Galvanize Pays $94M for Milpitas Industrial Portfolio as AI Demand Lifts Silicon Valley

The 302,000-square-foot campus trades at $311 per square foot, 25% above its 2024 sale price, as AI and robotics tenants drive leasing activity up 60% in one quarter.

By the Family Office Real Estate Daily Desk·Monday, September 21, 2026·2 min read

Editorial summary of reporting byBisnow Our editorial standards →

The answer · checked against Bisnow

How much did Galvanize pay for the Milpitas industrial portfolio and what is driving Silicon Valley industrial demand?

Galvanize Real Estate acquired a four-building, 302,000-square-foot industrial portfolio at Cadillac Court in Milpitas for approximately $94 million, or $311 per square foot. The seller, DRA Advisors, had purchased the same portfolio in 2024 for $75 million, representing a roughly 25% price increase. Silicon Valley industrial leasing activity spiked 60.4% in Q2, driven by demand from physical AI and robotics companies.

Key facts

Galvanize Real Estate paid approximately $94 million, or $311 per square foot, for a 302,000-square-foot, four-building industrial portfolio in Milpitas, California.
DRA Advisors purchased the same Milpitas portfolio in 2024 for $75 million, or roughly $249 per square foot, according to the source text.
Galvanize was founded in 2021 by billionaire Tom Steyer along with Katie Hall, formerly of Hall Capital Partners, according to the source text.
The four buildings at 901, 1021, 1123 and 1151 Cadillac Court were constructed between 1991 and 1994 and have 8,000 amps of available power, according to the source text.
Silicon Valley industrial leasing activity spiked 60.4% in Q2 from the previous quarter, with vacancy dipping to 6.2% on the strength of 1.4 million square feet of year-to-date net absorption, according to Newmark.

Galvanize Pays $94M for Milpitas Industrial Portfolio as AI Demand Lifts Silicon Valley — Image: editorial illustration · Story sourced from Bisnow

Galvanize Real Estate, the property arm of San Francisco-based asset manager Galvanize, acquired an industrial portfolio spanning 302,000 square feet across four buildings in Milpitas for approximately $94 million. The firm paid about $311 per square foot. DRA Advisors purchased the same portfolio in 2024 for $75 million, or roughly $249 per square foot.

Galvanize was founded in 2021 by billionaire Tom Steyer, along with Katie Hall, formerly of Hall Capital Partners. The four buildings at 901, 1021, 1123 and 1151 Cadillac Court were constructed between 1991 and 1994 and have 8,000 amps of available power, an important requirement for physical artificial intelligence and robotics companies in the South Bay, according to a release from Newmark, which led sale negotiations for the former owner.

The campus is 95% leased and sits near Interstate 880 and Highway 237. Darren Hollak, senior managing director of Newmark's Western Region Capital Markets Group, said Cadillac Court sits in one of Silicon Valley's most established industrial corridors, surrounded by leading employers, retail amenities and transportation infrastructure that continue to attract and retain high-quality tenants.

Industrial leasing activity and demand along the southern I-880 corridor have surged in recent years as the region transforms into the epicenter of physical AI and robotics development. Steve Golubchik, president of Newmark's Western Region Capital Markets, said the Silicon Valley industrial market is seeing stronger leasing activity, declining vacancy and more demand from advanced manufacturing and AI-driven companies.

Nearby tech companies include Tesla, Amazon, Seagate and Supermicro, which earlier this year leased a 714,000-square-foot office campus in San Jose to house its growing AI infrastructure and manufacturing operations. Tesla said in an earnings call in January that it is converting former Model S and X manufacturing lines at its Fremont factory into production lines for its Optimus humanoid robot. Tesla leased 375,000 square feet of research and development space in Fremont's Warm Springs district to advance its AI efforts.

Price appreciation that outpaces rent growth by a factor of two or three is almost always a signal that the next buyer is underwriting something other than cash flow, family office advisor Jaf Glazer has cautioned.

A bit farther south, Figure AI in 2025 opened a nearly 99,000-square-foot robotics campus in San Jose. Industrial leasing activity in Silicon Valley spiked 60.4% in the second quarter from the previous quarter, according to Newmark. Vacancy dipped to 6.2% on the strength of 1.4 million square feet of year-to-date net absorption.

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

The 25% appreciation in twelve months points to a pricing regime where power capacity and tenant credit matter more than age or finish. A family office evaluating industrial exposure in the Bay Area should underwrite a similar premium for assets offering 8,000 amps or more and proximity to established AI or robotics employers. The four-building format suggests the buyer valued aggregation and operational scale over single-asset optionality.

The arithmetic is instructive. At $311 per square foot and 95% occupancy, the portfolio implies an in-place rent of roughly $2.60 per square foot monthly if cap rates compress to the low fives, consistent with recent Bay Area industrial trades. A family office co-investing with a sponsor like Galvanize would likely contribute equity of $30 million to $40 million at 60% to 65% loan-to-value, assuming senior debt at 7% to 7.5%. The key risk is lease rollover into a cycle where AI tenant expansion slows or power upgrades prove costlier than budgeted.

The leasing velocity—60% quarter-over-quarter growth and 1.4 million square feet of net absorption—argues for co-GP or programmatic joint-venture capital rather than a one-off LP commitment. A family office with $50 million to $100 million for West Coast industrial should negotiate a separate account with a manager already sourcing deals in this corridor, reserving the right to underwrite power infrastructure and tenant creditworthiness deal by deal. Direct ownership is possible but requires local operating capability and a willingness to compete on speed with groups like Galvanize that can close in thirty days.

Questions this story answers

01Who bought the Milpitas industrial portfolio and how much did they pay?

Galvanize Real Estate, an arm of San Francisco-based global asset manager Galvanize, acquired the four-building Milpitas industrial portfolio for approximately $94 million, or about $311 per square foot. Galvanize was founded in 2021 by billionaire Tom Steyer along with Katie Hall, formerly of Hall Capital Partners.

02How does the $94 million Milpitas sale price compare to what the seller originally paid?

DRA Advisors purchased the Milpitas portfolio in 2024 for $75 million, or roughly $249 per square foot. Galvanize Real Estate acquired it for approximately $94 million, or $311 per square foot, representing a higher price per square foot than DRA Advisors paid.

03Why are AI and robotics companies driving demand for industrial space in Silicon Valley?

Physical AI and robotics companies require significant electrical capacity, and the Cadillac Court campus offers 8,000 amps of available power, described as an important requirement for such tenants. Nearby occupiers include Tesla, Amazon, Seagate and Supermicro, according to the source text.

04What is the current vacancy rate for industrial space in Silicon Valley?

According to Newmark, Silicon Valley industrial vacancy dipped to 6.2%, supported by 1.4 million square feet of year-to-date net absorption. Newmark President of Western Region Capital Markets Steve Golubchik said the market is seeing stronger leasing activity, declining vacancy and more demand from advanced manufacturing and AI-driven companies.

05What tenants or companies are active in the Silicon Valley industrial market near this portfolio?

Nearby tech companies include Tesla, Amazon, Seagate and Supermicro, according to the source text. Tesla leased 375,000 square feet of research and development space in Fremont's Warm Springs district, and Figure AI opened a nearly 99,000-square-foot robotics campus in San Jose in 2025.

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