Google buys up more property in S.J.
Search giant’s downtown development plans grow; key council meeting set
SAN JOSE — Google’s massive downtown San Jose development plan has prompted four more property purchases, including some that indicate the search giant’s area of interest has begun to widen.
The property deals occurred just a few days ahead of a key San Jose City Council meeting, during which the council is scheduled Tuesday to approve the launch of exclusive negotiations with Google for the purchase of 16 government- and city-agency-owned parcels. The parcels would be part of a land assembly for the tech giant’s proposed tech campus and transit-focused village near Diridon Station and SAP Center.
Two groups of property investors have been buying up properties in the area, which is home to a motley assortment of older industrial buildings. The buyers, operating under the names TC Agoge Associates and Rhyolite Enterprises, have already spent a combined $130 million in the acquisition binge.
In the most recent transactions, realty firm Trammell Crow — Google’s development partner for the Google village project — bought three properties on West Julian Street north of SAP Center, and a parcel on South Autumn Street near the train station, according to Santa Clara County property records.
Until recently, the Google-related purchases, which began in late December, were primarily concentrated south of SAP Center.
TC Agoge Associates, an affiliate that Trammell Crow controls, paid $3.6 million to buy three properties from the David Fazekas family. The properties are at 559, 567 and 573 W. Julian St. near North Montgomery Street. Those deals closed on June 14, county records show.
On June 15, the same Trammell Crow entity paid $2.8 million for the Borch Iron Works & Welding property at 20 S. Autumn St. The sellers were John Borch, John Harold and Borch family members, county records show.
Allan Borch, owner of the Borch operations on South Autumn Street, said Trammell Crow approached his family last fall.
“We were thinking of closing the business anyway,” Borch said in a recent interview. “It’s bittersweet” to contemplate shutting down operations, he added.
A number of additional land sales are in the works. Trammell Crow has obtained options to buy at least four more parcels from private property owners in the area.
On Monday, a community group delivered a letter to the San Jose City Council offices. Prepared for the Tuesday council meeting, the letter contains demands over how the Google project should be carried out.
“The city has an opportunity to shape this project into a model for how the responsible growth of tech companies can benefit all San Jose working families,” Silicon Valley Rising stated in its letter to the council and the mayor. “The city also has an obligation to ensure this project does no harm in terms of increasing economic inequality, housing un-affordability and displacement.”
Mountain View-based Google could potentially occupy 6 million to 8 million square feet near Diridion Station and SAP Center, according to a recent memo issued by San Jose city staffers.
“Google’s vision of an integrated development in San Jose aligns with the aspirations of the City, transit agencies, surrounding neighborhoods, and downtown businesses for extraordinary architecture, urban design, environmental sustainability, retail amenities, transit ridership and vibrant public spaces,” San Jose Mayor Sam Liccardo, the city’s vice mayor and three other council members wrote in a letter.
They urged the full City Council to approve the negotiations with Google.
“We appreciate that many are looking for the city to mandate conditions on the development and for Google to make commitments on potential amenities,” Liccardo and the council members wrote. “However, there are no conceptual plans yet for this development, and we have yet to commence negotiations. We will ensure a robust community engagement process.”