Amazon Acquires 395,335 SQFT Office Campus in Milpitas for $123MM

Amazon, Milpitas, Metro Corporate Center, Westpoint Capital Partners, El Segundo, CBRE, Great Mall, Pleasanton, Lionstone Investments, San Jose, San Francisco

By Catherine Sweeney

Amazon is continuing to expand its reach in the Bay Area. Most recently, the company has purchased a 395,335 square-foot commercial office property in Milpitas. According to the Mercury News, the company purchased the property for $123 million, or approximately $311 per square foot. 

The property, which is also referred to as Metro Corporate Center, was sold to the nationwide logistics giant by Westpoint Capital Partners, a real estate investment company based out of El Segundo, Calif. Property records show the company purchased the property in 2015 for $45.25 million. 

According to CBRE, which was previously listing the property, Metro Corporate Center consists of four buildings located at 909 and 1000 Gibraltar Drive and 1001 and 1051 South Milpitas Boulevard on a 29-acre plot of land. The property also features a 100,000 square-foot pad for the potential expansion of a building or additional parking. 

Located near the corner of South Milpitas Boulevard and Gibraltar Drive, the property is near both Interstate 880 and State Road 237. Just two blocks away from the Great Mall, the property is also within close proximity to more than 200 shops and restaurants. Additionally, the development is located within walking distance of the BART and VTA light rail station and just an hour drive to downtown San Francisco. 

In recent years, Amazon has made several moves into the Bay Area. Most recently, the company paid $75 million for several parcels of undeveloped acreage in Pleasanton. Amazon purchased the property in September from Lionstone Investments. 

Last year, the shipping and logistics company also made its first development plans in San Francisco with the acquisition of a 5.9-acre production, distribution and repair site. The company purchased the property from waste management company Recology for $200 million. Several months prior to that, the company also announced its acquisition of a 17.8-acre site in downtown San Jose for $59.3 million. 

Amazon has extended its reach across the rest of the U.S., as well. So far in 2021, the company has opened more than 250 new fulfillment centers, sortation centers, regional air hubs and delivery stations, with 100 opened in September alone. In addition, the company has hired more than 450,000 new employees since the start of the COVID-19 pandemic in 2020. 

West Coast Commercial Real Estate News