Amazon Buys 17-Acre Development Site Near Downtown San Jose for $59.3MM

Amazon, CBRE, Swenson, Piedmont Partners, San Jose
Courtesy of CBRE

By Meghan Hall

Amazon is continuing to expand its holdings in the San Francisco Bay Area, this time snapping up a property located in the heart of the action. In a transaction that recently closed, Amazon acquired 17.8 acres of land near downtown San Jose for $59.3 million. The seller was Piedmont Partners LLC, affiliated with William Ryan of Swenson Builders.

The property is located at 1605 S. 7th Street. The property is home to several businesses, including Piedmont Moving Group, Miller Recycling and Speedskunk Performance and Restoration.

CBRE Senior Vice President Brian Matteoni brokered the sale. According to a property flyer released by brokerage firm CBRE, between 149,500 square feet to more than 365,000 square feet of new industrial construction was planned for the property. The proposed project could accommodate either one large building totaling nearly 369,000 square feet, or two separate buildings, with 157,158 square feet and 149,512 square feet each. Building features include two-story glass entrance facades, interiors to suit, dock/grade loading and expandable parking.

The project would bring a high degree of visibility to whomever took the space, which is located two miles from downtown San Jose in the City’s Monterey Road Corridor. The Sun Garden Retail Center, anchored by Walmart and Big Five Sporting Goods, is located just adjacent to the property, while other retailers, from Target to Ross Dress for Less, Home Depot and Best Buy are within a one-mile radius.

However, at the end of September, a different site development permit was submitted to the City. In this iteration of the project, the owner would build 94,325 square feet of industrial space. At this point in time, it is unclear exactly what Amazon’s plans for the property might be.

During the third quarter, online retail tenants such as Amazon accounted for 17 percent of the top leases in Silicon Valley. According to a recent market report released by CBRE, the leases are directly correlated with growth in the transportation and distribution industries. Sales also picked up, and with employment slowly recovering, CBRE predicts that the Silicon Valley industrial market is on an upward trajectory.

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