X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN JOSE, CA-Del Monte Corp. has sold a 12.5-acre one-time cannery property here to KB Homes, which plans to develop the property with as many as 500 attached homes. The property sold for $24 million, or $44 per sf, according to local real estate sources.

The property, known as Del Monte Plant #3, is located north of Auzerais Avenue between Sunol Street and Los Gatos Creek. The plant closed its doors in December 1999 after 82 years of fruit processing and canning.

KB Homes has entitled the land for 40 units per acre. As part of the redevelopment agreement, KB Home agreed to retain a water tower on the property and preserve portions of the old cannery building and its materials. Some of the materials will be re-used in the nearby park and transit station. The intent of the cosmetic work is to give the park and station a look and feel of an old cannery.

The seller’s brokers, Greg Davies and Chip Macdonald of CPS/Corfac International, declined to confirm the acquisition price but did say KB Home was not the only interested party in the property. In addition to other bidders on the property, the City of San Jose expressed interest in buying the property for a baseball stadium, according to the brokers. All told, the disposition of the property was 2.5 years in the making, they said.

The residential development fits with surrounding developments. In October 2000, the Castle Group of San Mateo, CA acquired Del Monte Plant # 51 on nearby land and broke ground on a residential development. The community known as Cahill Park opened in March 2004. Of the 160 homes built on the site located on Bush Street off of The Alameda, 36 remain for sale.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE 2020Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.