Prologis Buys Another San Jose Building for $12 Million

Prologis is making another play in San Jose as it grows its Silicon Valley holdings in the face of the artificial intelligence boom.

The San Francisco-based logistics real estate firm acquired a tech and research building at 2304 Zanker Road in north San Jose for $11.6 million, the East Bay Times reported. Prologis bought the property from a Burlingame-based group led by business executives Igor Brener and Ahmed Kaddoura, according to records cited by the East Bay Times. The sellers purchased the building in October for $9.2 million.

The new Prologis-owned building spans 40,600 square feet and counts health care management company Excel MSO as a tenant. It shares a parking lot with an office building with tenants including local outposts of the Unite Here and SEIU unions. It isn’t clear if Prologis plans to redevelop the property.

Prologis has been making inroads in the San Jose market in just the past month. A couple of weeks ago, it acquired a vacant 14.2-acre site at 455 Piercy Road, previously proposed for light industrial development, for $14 million. Its plans for that property are not yet clear, though the site is entitled for 116,580 square feet of warehouse space and 5,000 square feet of office space. Also this month, Prologis proposed developing a three-story, 516,000-square-foot data center at 5977 Silver Creek Valley Road in south San Jose, Mercury News reported.

With more than 13 million square feet under its ownership, Prologis is the top commercial property owner in Silicon Valley. Last fall, the company set a record for the year’s priciest warehouse and distribution space transaction in the region, scooping up an 11-building, 1-million-square-foot portfolio at Crocker Industrial Park in Brisbane for $314.5 million, or about $330 per square foot. Prior to that deal, it already owned 13 buildings at the Crocker complex totaling more than 500,000 square feet.

— Chris Malone Méndez