A big North San Jose office-and-research building just sold for barely a third of its 2018 price, putting a very public price tag on the Bay Area's office slump. A San Francisco real estate investor paid roughly $12.2 million for the two-story, roughly 92,900-square-foot property at 2581 Junction Avenue, which traded for about $32 million in 2018 and was still being marketed for around $33 million as recently as 2025. Long tied to solid-state battery maker Ensurge Micropower, the building has been quietly shopped for a subtenant in recent months.
Steep Discount On North San Jose Asset
County records and reporting show Paceline Investors recorded the purchase on April 15, 2026, for about $12.2 million, a price roughly 61.9% below the $32 million sale in 2018, according to East Bay Times and public property data. Property databases list the 2018 transaction, with PropertyShark showing the prior sale, while commercial listings show the asset was marketed at about $33 million in 2025 and described as roughly 92,864 square feet on LoopNet. For a building of this scale, that kind of markdown is a blunt reminder of how far values have fallen since the pre-pandemic boom days.
Buyer And Tenant Background
Paceline Investors, a San Francisco-based investor that describes itself as an active value-add buyer across the region, is listed as the purchaser. Ensurge Micropower lists 2581 Junction Avenue as its U.S. facility and has appeared in company press and filings tied to the site, pointing to industrial and R&D uses inside the building. Brokers and market sources say Ensurge has explored subleasing portions of the space as it rethinks how much room it actually needs.
What The Sale Signals For The Market
Analysts say deals like this one highlight a two-track Bay Area office scene: investors are still out there writing checks, but for non-trophy buildings, the prices are far lower than in years past. Recent coverage shows sales volumes climbing even as pricing keeps sliding, a trend chronicled by The Real Deal and echoed in Hoodline's report on new funds hunting office and research assets in the region. For lenders and local governments, trades at these levels can reset comparable values and make assessments and tax calculations a lot trickier.
For North San Jose specifically, the Paceline purchase could become a fresh benchmark for nearby industrial-flex and older office parcels as owners decide whether to hold, repurpose or carve up their properties. City officials and representatives for the buyer and tenant did not immediately respond to requests for comment.
