Adobe Spends $68MM for San Jose Lot Planned for Total of 1.5MM SQFT Highrise

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By Vladimir Bosanac

Adobe announced on June 12, 2017 a major expansion in San Jose and said that it was in contract to acquire a lot at 333 West Fernando Street, which is just the west of its existing campus. According to public documents, Adobe paid Wolff Urban and J.P. DiNapoli Companies Inc. $68 million. The previous owners received approval to develop an 18-story, 1.5 million square foot high-rise that would provide 700,000 square feet of office and retail space with the remaining 800,000 square feet used for parking, loading docks and mechanical areas.

The approval allowed for the demolition of a 30,000 square foot building currently existing on the site. The timing to move forward with building permits and construction was dependent on choosing one or more potential tenants and whether they will need interior modifications made to the space, said Asheshh Saheba, managing partner at Steinberg Architects last summer. He estimated a two to three-year completion for the proposed development.

“San Jose is having increased activity from the tech industry,” offered Saheba. “The project is located across from Adobe and will feature large floor plates, which often attracts tech companies.”

The floor plates are planned to average 52,000 square feet and be accessible by two elevator systems. The building is designed with employee comfort as a top priority and features several terraces on multiple floors to allow easy access points to open space. The terraces provide views of local mountain ranges, landscaping and a design that maximizes shade to keep temperatures cool in the summertime while still maintaining natural light exposure.

Five levels of above-grade parking were planned and ground floor retail geared to serve the surrounding community as well as draw commuters from nearby transit routes. The sidewalk adjacent to retail would be expanded to create an indoor-outdoor connection for patrons and employees. A market is expected to occupy some of the retail space and a restaurant is planned for one of the tower’s upper floors.

The building’s facade in the plans is geared to minimize heat absorption to reduce energy costs and allow for windows to remain unshaded, drawing in natural light to work areas. Flow-through planters will be utilized for stormwater management at the project’s base.

“The proposed project is consistent with the overall vision for San Jose’s downtown,” explained Rebecca Bustos, Planning project manager. “It provides dense redevelopment of what is currently an underutilized site and its design speaks to the urban, pedestrian-oriented nature of this area. Pedestrian-scale elements are provided at the ground floor level and outdoor amenity terraces are provided on upper floors to break up the mass of the building. The 18-story structure will create another distinctive silhouette for the Downtown skyline.”

There is no indication at this time how much of the proposed development, if any, Adobe would adopt. According to one source who wanted to remain anonymous, as long as Adobe’s new proposal maintains the same square footage, the adjusted project’s design will only need a permit adjustment reviewed at the Planning Director’s hearing.

West Coast Commercial Real Estate News