Roxborough Group, Paceline Investors buy home of Ensurge Micropower
By Rachel Scheier
CoStar News
May 7, 2026 | 12:27 P.M.
A Silicon Valley building that houses a company that makes ultrathin lithium batteries for wearable electronics and state-of-the-art hearing aids has sold for $29.2 million.
Two San Francisco-based investors, the Roxborough Group and Paceline Investors, bought the approximately 100,000-square-foot research-and-development facility at 2581 Junction Ave. in North San Jose, which has emerged from the long slump of the pandemic years as a growing advanced manufacturing hub.
The buyer assumed $17 million in outstanding debt as part of the deal.
The seller was Bay Area-based Nautilus Global Investments, which purchased the property in 2018 for $32 million.
The flex property, built in 1983, was subsequently upgraded for advanced manufacturing. It now features specialized infrastructure, including some 8,500 amps of power capacity and clean room improvements. The buyers noted in a press release that high power facilities are sought after in Silicon Valley, due to the time it takes to install such electrical infrastructure.
The facility is leased to a single tenant, Ensurge Micropower, which has occupied the building for about a decade. The lease runs through late 2028, with no renewal opportunities in place, according to marketing materials for the property.
“This creates a compelling opportunity for a buyer to reposition the asset for future occupancy, whether for their own use or to secure a new high-credit tenant,” the brochure said.
Ensurge began marketing the space for sublease in 2023, though it is still listed on its website as the firm’s global headquarters.
“We are attracted to the building’s functional qualities and its existing electrical power infrastructure, which is rare for a building of this size in the Silicon Valley market,” Paceline Managing Principal Jay Atkinson said in a statement.
The purchase marks the first Silicon Valley R&D investment funded through the Roxborough Fund III, a $518 million discretionary fund for opportunistic and value-add investments, the partners said in a press release.
“The acquisition of 2581 Junction aligns with Roxborough’s strategy of targeting assets with differentiated infrastructure in supply-constrained markets with strong underlying demand,” Roxborough Vice President of Commercial Acquisitions Matt Yamodim said in a statement. He added that the area “consistently attracts strong, high-quality tenants in a market that is seeing an influx of demand by companies in the hardware and manufacturing space.”
Silicon Valley is seeing growing demand from hardware companies and those that make chips and other artificial intelligence infrastructure to robotics firms, while San Francisco is fast becoming a hub for business-to-business AI startups as well as large language model giants such as Anthropic and OpenAI, said Alexander Quinn, senior director of research for JLL in Northern California.
Activity in the North San Jose office submarket is being driven primarily by semiconductor, hardware, AI-adjacent and infrastructure-oriented firms rather than traditional software users. Companies are prioritizing buildings that support engineering, R&D and collaboration, according to CoStar Research.