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Site near downtown San Jose with redevelopment potential sells for $22M
Land could be turned into an industrial or commercial center; Its buyer acquired more than 13 acres across Silicon Valley in two months
A local developer that bought several parcels across Silicon Valley late last year snapped up a site near downtown San Jose that could be turned into an industrial or commercial center.
San Jose’s Valley Oak Partners paid about $22 million for five parcels near the corner of South Third and Keyes street, the Mercury News reported. The deal was recorded with the Santa Clara County Clerk-Recorder’s Office on Dec. 17.
The site already has almost 150,000 square feet of industrial buildings, according to a LinkedIn post from Colliers, which represented Valley Oak and the seller, Ryan Trust, in the deal. It’s less than a mile from where Amazon purchased almost 18 acres in 2020 that’s slated to be redeveloped into an almost 100,000-square-foot delivery facility, assuming it receives the city of San Jose’s approval. Its proximity to the planned facility combined with its size — a little more than 6 acres — makes it suitable for industrial, logistics, or commercial uses, property experts told the Mercury News.
The deal expands Valley Oak’s Silicon Valley property portfolio, which expanded by about a dozen parcels toward the end of last year. The company spent almost $16 million on four sites in Milpitas, Campbell, and San Jose in November that it acquired from San Jose Water, the Mercury News reported. That transaction, combined with the one completed last month, means Valley Oak acquired more than 13 acres in two months.
The company hasn’t publicly outlined its plans for any of that land, although history suggests it could flip some or all of it for a profit. It spent years buying property near Diridon Station, San Jose’s main transit hub, in the city’s core that a joint venture between Boston Properties and the Canada Pension Plan Investment Board eventually purchased for a three-building office campus project, the Mercury News reported.
Called Platform 16, that project could resume construction this year after Boston Properties paused it due to the pandemic, the newspaper said.
[The Mercury News] — Matthew Niksa