Electroglas Completes Downsize Deal

SAN JOSE, CA-Electroglas completed a retrenchment this week by vacating its 263,000-sf four-building campus in favor of a 78,000-sf building a few blocks away. The maker of probes used in semiconductor manufacturing is leasing its new home from Divco West.In January, with this move in mind, Electroglas sold its five-year-old campus in the Edenvale business district east of Highway 101 to IDT for $29 million. The campus includes three buildings in two-and three-story configurations plus land for an optional fourth building.For IDT, the acquisition will allow it to consolidate multiple leased locations in Santa Clara totaling about 250,000 sf. IDT had begun outfitting the campus for its use and moving some of its employees to the new location. Now the company will complete interior improvements to the balance of the space. It expects to fully occupy the former Electroglas campus by July.For Electroglas, the deal rids it of an asset that it developed in 1999 but no longer had the headcount to fill. The company says its smaller space requirement is the result of changing business conditions and the off shoring of some of its manufacturing operations.Electroglas new headquarters is 5729 Fontanoso Rd. Its former campus–IDT’s new campus–is located at 6024 Silver Creek Valley Rd. Eric Fox, Mike Benevento and Mike Filice of CPS/Corfac International in Santa Clara represented Electroglas in both the sale to IDT and subsequent lease. IDT was represented by CPS’ Joe Moriarty and Greg Davies.Fox tells GlobeSt.com that the transaction is a good indication of large tenant activity and the scarcity of sites that can accommodate them. Since the third quarter, Fox says there has been a lot of activity in the 200,000-sf range that has absorbed many of the sites. “Like IDT, a lot of companies are moving out of disparate multiple smaller locations and consolidating in one large building or in multiple buildings in a campus setting.”IDT has been following in the real estate footsteps of Electroglas for some time now. Fox says the leased buildings IDT is moving out of are buildings Electroglas used to occupy before it developed the campus it just sold to IDT.