By Meghan Hall
The highly anticipated Coleman Highline development in San José could continue to grow in the near future, as affiliates of Coleman Airport Partners—which includes the developer of Coleman Highline, Bay Area-based Hunter Properties—have snapped up 12.7 acres of land near San Jose International Airport for $24.8 million last week. The property is located near 1123 Coleman Ave. and next to the 1.5 million square foot Gensler-designed office park, which has attracted major tenants such as Roku and 8×8.
“We were the natural buyer and that property will be folded into the broader enterprise of Coleman Highline,” said Deke Hunter, managing member and founder of Hunter properties. “The property is very unique to us.”
The transaction was first reported by The Mercury News.
The City of San José has been working to sell property around the airport and with the money gained from this most recent sale will put the funds toward public parks and the Agnews Soccer Complex, according to city documents. According to Hunter, the City had initially retained the parcel when it sold the surrounding properties 12 years ago, and planned to develop the land into parks.
“They kept back roughly 10 acres on which they were going to put recreational fields,” explained Hunter. “The City realized that wasn’t the best use of funds, and they wanted to build a bigger use facility, so the property became surplus.”
Hunter said that Hunter Properties and the City began discussing the sale two years ago, but only received City Council backing to move forward with a purchase and sale agreement this past summer. Exactly how Hunter Properties will develop the land is unclear, although Hunter said that two acres will remain as practice fields for the San Jose Earthquakes, and some of the remaining land could be used for parking.
“It will take a little pressure off of the burden those parking garages would have to carry,” said Hunter.
With the addition of new property, Coleman Highline is poised to become a staple office campus in the Silicon Valley; the announcement of the transaction comes after Hunter Storm purchased another parcel next to the development in March 2018 for $33,968,500, according to public records.
Plans for the original development also include a 175-key hotel, 53,000 square feet in amenities and 1,600 planned apartments. Parking for 4,835 cars as well as a public retail amenities building is also slated for delivery. Rich with amenities and easily accessible from Interstate 280, State Route 87 and the Santa Clara Caltrain Station and Santa Clara University, the project site has many of the attributes that typically appeal will major technology and life sciences tenants looking to expand their presence in Silicon Valley.
The company has already broken ground on the first phase of the project, a 357,000 square foot development that includes a five-story, 162,000 square foot building and a six-story building with 195,000 square feet of office space. Cloud communications and customer engagement firm 8×8, moved into the campus earlier this year after taking up the 162,000 square foot building completed during phase one. Roku will begin occupying the first of four buildings beginning in 2019, with leases for the remaining buildings scheduled to commence as the come online throughout next year and into 2020. In total, Roku will occupy 570,000 square feet at Coleman Highline, leaving behind its current headquarters in Los Gatos, Calif.
“Coleman was the best solution from a timing, commute, amenities, economic and expansion standpoint. Roku is growing rapidly, and this opportunity presents a campus home for some time to come,” said Phil Mahoney, executive vice chairman of Newmark Knight and Frank, to The Registry in an August statement.