South Bay tech company buys foreclosed San Jose office building

SAN JOSE — A technology company purchased a vacant South San Jose building that had been seized through a foreclosure, a sign that some tech firms continue to scout for sites to operate despite any economic uncertainties.

Rocket EMS, through an affiliate led by its executives, paid just under $18.8 million for a research and office building at 5729 Fontanoso Way, documents filed May 20 with the Santa Clara County Recorder’s Office show. Evergreen Advantage was the seller.

The purchase price suggests the building was acquired at a discount, after the property had landed in default, was vacant for years, endured a bankruptcy, and was seized by its lender.

Rocket EMS, which provides electronics manufacturing services that include circuit board assembly, paid 23.5% below the $24.5 million value that was placed on the building in 2024 at the time of the foreclosure by the property’s lender, Evergreen Advantage.

Several years ago, it appeared that the 78,200-square-foot building had landed a tenant.

In 2021, Khloris Biosciences leased it. The biotech firm at the time appeared to be on an expansion track after it raised $5 million in a venture funding round in 2018, according to Crunchbase.

Khloris Biosciences never occupied the building, despite the company’s still-visible website that states it can be contacted at the 5729 Fontanoso offices.

However, several on-site observations by this news organization over a period of years never discerned the presence of a tenant at the site.

Rocket EMS did not immediately respond to requests by this news organization about its plans for the building.

The company, which has been in existence for 10 years, lists a Santa Clara building as one of its sites and a Nevada building as another location for its operations.

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This story was originally published May 21, 2026 at 12:30 PM.