Developer plans huge industrial and research site
29-acre San Jose location is ripe for the project
SAN JOSE >> A big chunk of south San Jose land has been grabbed by a veteran developer with a global reach who plans a huge industrial, research or manufacturing complex on the site.
Development company Hines paid $62.3 million for the land on Piercy Road in San Jose, documents filed on Dec. 17 with the Santa Clara County Recorder’s Office show.
The south San Jose deal means that for the second time within a few days, Hines has completed a big investment in San Jose real estate. On Dec. 15, Hines paid $59.6 million in cash for a site at 150 S. First St. that is ripe for redevelopment.
The downtown property is currently a mixed-use site that is primarily a data center with some retail and office uses. Experts believe the property could be redeveloped as a creative office complex or bulldozed and replaced with an office tower.
Texas-based Hines operates in 27 countries and has $83.6 billion in properties under management, according to the company’s website. The company at present has 171 development projects underway worldwide, according to Hines.
In the south San Jose transaction, Foxconn Asset Management, a unit of Taiwan-based Hon Hai Precision Industry, sold the property to Hines in an all-cash deal, according to county documents.
The south San Jose property consists of empty land, located on a site with close access to the U.S. Highway 101 interchanges of Blossom Hill Road-Silver Creek Valley and Bernal Road-Silicon Valley Boulevard. It’s also close to a major interchange of Highway 101 and State Route 85.
Hines has filed a preliminary proposal with San Jose planners to develop the land, which totals 29.4 acres, city documents show. It envisions two big buildings that together would total at least 403,900 square feet, according to the municipal planning files.
The development is being steered through the city planning process by The Schoennauer Co., a property and land-use consultancy. Erik Schoennaur, a company principal, declined to comment. Hines also declined to comment. Planning documents say the buildings would be used for “potential industrial distribution, manufacturing and research and development.”