Archer Aviation Expands in San Jose With Big Office Lease

A San Jose office building that was once mired in a loan failure, bankruptcy and foreclosure is getting a new life with a future-minded tenant.

Archer Aviation, a San Jose-based maker of flying electric vehicles, has leased offices at 10 West Tasman Drive in the South Bay city, the Mercury News reported. The company leased the entirety of the 105,000-square-foot building owned by West Tasman Drive 10, an affiliate of Copia Lending.

The Copia Lending affiliate foreclosed on the building’s delinquent loan and seized the property last October. The lender estimated the office building’s value at $23.7 million, placing it 53.8 percent below the property’s assessed value in January 2024.

San Jose-based entity called Heritage 10 West Tasman bought the building in 2021 for $30 million. It filed for bankruptcy to try to avoid foreclosure and the loss of the building. The entity said the building was vacant for years, and it had a hard time securing a tenant to move in, per the Mercury News.

The Archer Aviation lease adds to its growing presence in town. The company now operates three large work hubs in north San Jose all within a few blocks of each other. That includes its headquarters at 190 West Tasman — down the street from its latest new office — and 77 Rio Robles, which it leased in 2023.

Archer is looking at using the Bay Area as its testing grounds for its electric vertical takeoff and landing (eVTOL) vehicles, which are similar to helicopters. Last year, it announced plans to create an “urban air mobility network,” featuring takeoff and landing locations in South San Francisco, Napa, San Jose, Oakland and Livermore. It would use electric-powered air taxis to reduce commute times across the region.

The company is moving forward with plans to manufacture, mass produce and deliver electric aircraft to make the vision a reality.

— Chris Malone Méndez