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Travis Kalanick’s real estate venture picks up downtown San Jose building
City Storage Systems could be planning an HQ near Google's future 8M sf campus
Travis Kalanick’s new real estate venture has picked up a commercial building in downtown San Jose, although for what remains unclear.
City Storage Systems, the firm that the former Uber CEO took over earlier this year, paid $7.3 million for a three-story building in the city’s historic core in late November, according to the Mercury News.
CSS buys up distressed assets and repositions them to cater to digital-age businesses. In Los Angeles, the company created a subsidiary, CloudKitchens, that built a kitchen that it rents to delivery-only restaurants. It also helps with marketing and delivery services. With CloudRetail, CSS wants to do the same for e-commerce retailers who need storage and other facilities but don’t need a physical storefront.
CSS’s plans for the building are unclear. The firm could make the 30,400-square-foot building into a headquarters or it could repurpose it as a CloudKitchens or CloudRetail outpost. The building sold once earlier this year for $6.5 million.
Google is planning to build its biggest campus ever just 15-minute walk away at San Jose’s Diridon Station. Google plans it to be an 8-million-square-foot “transit-focused village” with public plazas, retail, and a greenbelt.
Kalanick’s new building has been a boxing gym, furniture store, and an Odd Fellow’s hall in the past, according to the Mercury News. CSS’s purchase is the second one of the year — a company bought it for $6.5 million in June with plans to turn it into a gym. [Mercury News] – Dennis Lynch