SAN FRANCISCO, CA-Trammell Crow Co. and joint venture partner Principal Real Estate Investors have purchased a 57-acre land site from Cisco Systems Inc. located near the existing Cisco campus in North San Jose, CA. According to a prepared statement, the venture is evaluating a number of opportunities on the land, including speculative industrial development, land parcel sales and build-to-suits.
Rob Shannon, SVP with CBRE in San Jose, CA represented the joint venture in the deal. The project marketing team will also include Chip Sutherland, SVP with CBRE in San Jose, CA.
Shannon tells GlobeSt.com that this is an opportunistic land purchase at a favorable basis in a high barrier to entry market. “We see it as a once in a decade opportunity to find a sizable land parcel in a desirable infill location. The flexible zoning will allow for the owner, a joint venture between Trammell Crow and Principal Real Estate Investors, to pursue a full range of uses including office, R&D and industrial,” he says. “We are working on a phasing plan which will address user demand in each sector.”
The site is highly visible from and accessible to Highway 237. With proximity both to the San Francisco Peninsula and to the 880 Corridor leading to the Port of Oakland, it is the only available industrial site of this magnitude in Silicon Valley and will be the first modern class A industrial facilities developed in San Jose in the past 15+ years, according to a statement.
According to a previous GlobeSt.com article, there is growing demand for large manufacturing and warehousing facilities as multinational technology firms expand aggressively and attract suppliers to the region.
“We’ve been looking for opportunities to do a high-quality business or industrial park in Santa Clara County,” explains John Greer, principal and head of Trammell Crow’s Northern California Business Unit. “We feel there’s a diminishing inventory of quality industrial space, and there are clear opportunities here for uses including assembly and light manufacturing, as some of these activities come back to the Bay Area from off-shore.”
“Finding 57 contiguous acres in the Bay Area is rare,” says Rob Klinkner, assistant managing director, with Principal Real Estate Investors. “We are very excited that our first joint venture with TCC in Northern California has the capacity to create a state of the art industrial campus. We believe this is an excellent opportunity to develop high quality product to meet the pent up demand for well-located class A space.”