Adobe officials say the property could hold as much as 1 million sf of office space. "We saw the opportunity to acquire land Adobe would need to assure future growth in downtown San Jose," says Randy Knox III, Adobe's director of real estate, facilities and security.

The five-acre development site is currently home to a 16,000-sf office building constructed in 1934. The building houses the headquarters for the San Jose Water Company, an SJW subsidiary.

The building was designated eligible for the National Register of Historic Places in 1990 and the following year was designated as a San Jose City Landmark. Adobe officials say any future development plans would keep the exterior of the historic building intact.

There are no immediate plans to develop the site. San Jose Water Company, a SJW subsidiary, has an option to lease back the buildings and designated parking until June 2008. As well, Adobe is currently focused on expanding in San Francisco. The company is building out office space at 625 Townsend Street, which sits adjacent to 601 Townsend, another of its existing facilities.

Adobe currently leases approximately 950,000 sf for its San Jose headquarters complex. Located at Park Avenue and Almaden Boulevard, the complex is comprised of three office towers housing approximately 2,300 employees, which is about 500 fewer that the space can accommodate.