Vivotek's building at 2050 Ringwood Avenue, San Jose · 24,175 sq ft · about to sit empty
The situation
The team is consolidating into Delta's Fremont office, leaving this building vacant. Its current market value is likely in the range of $7.4 to 7.6M. The question is not whether to act, but which option realizes the most value from that capital.
Three ways to use it. This dossier reviews each one.
Valuation
Each option below proceeds from this figure. Based on nearby buildings that recently sold, 2050 Ringwood should sell for roughly $7.4 to 7.6 million, within a wider range of about $7.2 to 8.2 million. Here is how we get there.
Overpriced buildings in this submarket have remained unsold for extended periods. Priced to the market, the building transacts. We recommend the middle approach.
All calculations in this dossier use ~$7.4M (about $306 per sq ft), the conservative end of the anchor range, so nothing is overstated. Priced to the stronger comparables, $8.2M is possible.
| Address | Sold | Size | Built | Price/sq ft | Notes |
|---|---|---|---|---|---|
| 1321 Ridder Park Dr | Sep 10, 2025 | ~36,030 SF | 1984 | $368 | Top of the range |
| 832 Charcot Ave | Jun 9, 2026 | ~118,774 SF | 1975 | $320 | Middle, much larger building |
| 2205 Fortune Dr | Dec 22, 2025 | ~31,445 SF | 1979 | $294 | Bottom of the range |
| 350 E Plumeria Dr | May 29, 2026 | ~142,700 SF | 1984 | $231 | Much larger, sets the floor |
Recent sales ran from $294 to $368 per sq ft. For an older building like this one, a fair middle is about $300 to $340 per sq ft. Closing dates are from recorded deeds; time on market is not reported for closed sales.
| Address | Asking price/sq ft | How long for sale | What it means |
|---|---|---|---|
| 2040 Ringwood Ave next door | $361 | ~911 days | Priced high, no buyer in over 2.5 years |
| 2109 O'Toole Ave | $360 | ~474 days | Almost fully rented, still no buyer |
| 193-199 Topaz St, Milpitas | $338 | ~474 days | For sale over a year |
| 1570 Oakland Rd | $342 | ~2 weeks | Newly listed, priced at the high end |
Buildings priced at $338 to $361 per sq ft have sat 15 months to over 2.5 years with no buyer. The clearest example is the adjacent property, 2040 Ringwood. Overpricing results in extended time on market.
Sold prices come from public county records (Santa Clara County). Asking prices and time-for-sale come from listing sites. Rough for now, to be confirmed with a full pricing report.
Retain the building and lease it to a tenant. The rental return appears reasonable on paper. However, it depends entirely on securing a tenant, and the capital remains tied up in an aging building throughout.
Sell this building and apply the proceeds toward a property Delta requires in Texas, where it is expanding. IRS Internal Revenue Code Section 1031, a 1031 Exchange1031 Exchange. An IRS provision permitting the sale of one investment property and reinvestment of the proceeds into another without immediate tax on the gain, provided the replacement is acquired within the required timeframe (45 days to identify, 180 days to close). The tax is deferred, not erased, and is owed later. Eligibility depends on the property and the taxpayer, so whether it applies here is for your tax advisor to determine., permits the exchange of one investment property for another with deferral of the tax on the gain, subject to eligibility. The proceeds are then applied to a building Delta intended to acquire regardless, and the tax owed could be deferred rather than paid now.
A couple of ideas to explore with your advisors, not a recommendation or a return estimate. What any of them earns is theirs to model.
Sell the building and deploy the proceeds into the business. No exchange, no replacement property. Any tax owed would likely be due now, and Delta receives the sale proceeds as unrestricted capital. A growing company typically earns more on its capital than an aging building earns in rent. This is the likely selection if the capital is worth more in the business than held in real estate.
Summary
Leasing appears to cost nothing, but it retains the capital in an aging building. The same capital, released and deployed in the business, may earn more, and that difference compounds over time. Exact amounts are for your advisors to determine. This illustrates the pattern only.
Capital retained in the building (A) tends to appreciate slowly. Exchanged into a Texas building Delta occupies (B) it grows with that building, with tax potentially deferred. Deployed in the business (C) it may grow fastest. No dollar figures are shown, by design; this illustrates the pattern only.
Illustration of the idea only. No dollar amounts, because the real numbers depend on Delta's return and its tax situation, which are for your financial and tax advisors to work out.
Recommendation
Exit a vacant building and redirect the capital where it earns more: into the business, or tax-deferred into the Texas expansion Delta is already funding. Either outcome is preferable to leaving the capital tied up in an aging building.
Sources & references
We use neutral, outside sources, government data and public records. Each link opens the source for independent verification.
Figures shown are estimates, to be confirmed against a full pricing report, current market rents, and professional advice. This is not tax, legal, or investment advice.