By Jon Peterson
Cupertino-based Hunter Properties is planning to start the first phase of its 1.75 million square foot mixed-use Coleman Highline development in San Jose this summer. The project is located at 1125 Coleman Avenue. At the same time, the company is planning to start a project in Menlo Park at the end of the year, should entitlement process be finalized in time.“We are looking to start the initial phase of the project in July or August of this year. It will likely take 16 to 18 months to finish this portion of the development. We are planning at this time to have the office building part to be started on a speculative basis,” says Deke Hunter, president of Hunter Properties. He declined to comment on the total cost of the development.
The first phase of the development will consist of 330,000 square feet of office, a 150-room limited-service extended stay hotel and 15,000 square feet of pop-up retail. The retail part would include some food trucks kind of operation. The entire project will consist of 1.5 million square feet of office, 300 hotel rooms and 30,000 square feet of retail.
Hunter thinks that the current office market in San Jose has the ability to handle a spec development. “The market for Class A space now has vacancy around 10 percent. We are expecting to attract a good deal of technology companies to our project,” he said.
Coleman Highline is located adjacent to the new soccer stadium for the San Jose Earthquakes. Hunter believes there is some benefit for his project being so close to the new sports facility. “I think that some of our corporate tenants in our office project would be able to use the stadium site for announce new products or for other corporate events and that is an adding bonus that not many other office projects will have,” he said.
Hunter Properties has in the works another new development. This is 27-unit for-sale single-family development located at 133 Encinal Avenue in Menlo Park.
“We are planning to start the entitlement process in the next 60 days. I would think that we would start the development of this site by the end of 2014,” said Hunter.
The 1.75-acres of land for this project was sold last month by LDH, LLC. The previous owner of the property was a private buyer. Both the buyer and seller of the property were represented in the sale by Mike Moran, a managing principal in the Burlingame office, and Sam Wright, a senior vice president in the East Palo Alto office of Cassidy Turley Commercial Real Estate Services. The company declined to comment on the sales price on the land.
Hunter Properties has not finalized the pricing on the homes yet. “We figure to mostly have three- and four-bedroom kind of product. The buyers would include young families who might be looking to move out of an apartment and buying their first home,” said Hunter.
The development site had been the home of Roger Reynolds Nursery and Carriage Stop. The property is well situated as it’s near the Caltrain stations for Menlo Park and Atherton and is about one block from El Camino Real.
Photo by Apple