Hines has proposed redeveloping an aging tech campus in Fremont and replacing it with a 265,600-square-foot industrial building that potentially could be leased to Amazon.com.
The Houston-based developer, a major builder in the Bay Area, has proposed razing three commercial buildings at Dixon Landing Research Park to build a modern industrial center, the San Jose Mercury News reported.
Hines bought the 209,300-square-foot complex at 49000, 49036 and 49086 Milmont Dr. in April 2021 for $47 million.
The new industrial building, given city approval, would total 265,600 square feet, according to Fremont records. The completed project would be a building shell.
In February of this year, Hines leased a 278,500-square-foot data center in Hayward to Amazon. It’s also been an active player in Bay Area commercial real estate, with more than $1 billion in office and research building projects.
In recent years, Hines paid $59.6 million for a giant data center in Downtown San Jose; $800 million for a PG&E headquarters in San Francisco; $108.9 million for Dublin Corporate Center in Dublin; $195 million for Santa Clara Towers in Santa Clara; $107.1 million for a Santa Clara tech and research center; and $68 million for a Santa Clara office building inhabited by Apple.
In September, a Hines affiliate paid $62.25 million for 30 acres in South San Jose, with plans to develop two buildings with 400,000 square feet of industrial space for distribution, manufacturing and R&D.
Early this year, the Houston-based investment firm launched a $1 billion fund to target undervalued properties in 30 cities across the nation.
A recent shift to working at home and to online shopping have upended the office and storefront retail markets in the Bay Area, the newspaper reported. As a result, property owners and developers such as Hines have looked for redevelopment opportunities.
Replacements of choice for many commercial buildings include tech-oriented manufacturing, life science, biotech and laboratory projects.
[San Jose Mercury News] – Dana Bartholomew
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