Silicon Valley R&D building trades for $84.1M

SAN FRANCISCO, Sept. 29, 2026 - JLL Capital Markets announced today that it has completed the $84.1 million sale of 601 McCarthy, a 189,481-square-foot R&D building in Milpitas, California.

JLL represented the seller in the all-cash sale of the asset to a fund managed by Morgan Stanley Real Estate Investing, representing $444 per square foot.

Built in 1998 and renovated in 2017, 601 McCarthy is 100% leased to KLA Corporation (NASDAQ: KLAC), a leading semiconductor process control and inspection equipment manufacturer. The property serves as a critical R&D and data center facility for KLA, located just a short walk from the company's Milpitas global headquarters. 601 McCarthy features two stories, 6,000 amps of power, large floor plates and a 9.7-acre site with 620 parking spaces. KLA has made substantial recent investments in the property, including a significant data center expansion and power infrastructure upgrades.

The asset is strategically positioned at the intersection of State Route 237 and Interstate 880 within Silicon Valley's "Golden Triangle," the globally recognized epicenter of semiconductor innovation and advanced manufacturing. The Milpitas-North San Jose corridor is home to the headquarters and major operations of industry leaders including Cisco, Western Digital, Micron, Applied Materials and SanDisk, creating an unmatched ecosystem for hardware and semiconductor companies.

JLL's Capital Markets Investment Sales and Advisory team representing the seller was led by Daniel Renz, Adam Lasoff, Will Connors, Michael Manas, Jack Kovalik and John O'Neal.

"This transaction represented a compelling opportunity for investors seeking long-term, credit-quality cash flow in the heart of Silicon Valley's semiconductor hub," said Renz. "KLA's recent lease extension through 2037 and substantial capital investment into 601 McCarthy underscore the property's strategic importance to their operations and the critical role Milpitas plays in supporting the semiconductor industry's growth."

"The all-cash acquisition reflects strong investor demand for stabilized, single-tenant assets leased to investment-grade technology companies," added Lasoff.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The group's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients, including investment sales and advisory, debt advisory, M&A and corporate finance, loan sales, equity & fund placement, net lease, derivative advisory and energy & infrastructure advisory. JLL Capital Markets has more than 3,000 specialists worldwide with offices in nearly 50 countries.

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Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.