MEPT, Bentall Kennedy and Trammell Crow Company announce acquisition of Diridon Station land in San Jose, CA for multi-phase development project
SAN FRANCISCO, September 30, 2015 – Multi-Employer Property Trust (MEPT) and its real estate advisor, Bentall Kennedy (U.S.) Limited Partnership (Bentall Kennedy), together with Trammell Crow Company announce the acquisition of land at 374-384 West Santa Clara Street in San Jose, California for a purchase price of $58,500,000.
The land acquisition and planned development projects on the site are structured on a joint venture basis, continuing a longstanding and successful partnership that spans more than 85 projects over 25 million square feet and $2.4 billion in value.
“Diridon Station is the Silicon Valley terminus for Caltrain ACE trains, VTA light rail and a planned BART station. The master plan for Diridon Station is intended to create a transit hub similar to San Francisco’s Transbay District,” said Ashley Powell, Senior Vice President and Western Region Head of Transactions for Bentall Kennedy. “With 10 million square feet of active office tenants in the market and strong demand for apartments, MEPT’s plans for higher-density development – up to 960,000 square feet of tech oriented, large floorplate, high clear height, office space, over 30,000 square feet of retail and 325 multi-family residential units – should attract tenants in Silicon Valley. This project will significantly contribute to the transformation of Diridon Station into a thriving live/work/play environment.”
“For MEPT, this land acquisition represents the first step in a multi-phase development project that aligns directly with MEPT’s long-term strategic plan,” said David Antonelli, Executive Vice President and MEPT Portfolio Manager at Bentall Kennedy. “Diridon Station provides an urban growth opportunity in the Downtown San Jose submarket, a prime location in Silicon Valley, one of the most innovation-focused markets in the United States, and it offers a high-rise development ideally suited to the Fund’s investment strategy.”
374-384 West Santa Clara Street in San Jose is an 8.22 acre site adjacent to the Diridon Station master plan that is zoned appropriately for the construction of two 10-story office buildings and a 9-story multi-family building. Diridon Station is the terminus for the Caltrain link from San Francisco, it is the link to the Central Valley through the ACE train service, it is the terminus for the Amtrak Capital Corridor train from the north, the future extension of BART and it is the first Northern California stop for potential high-speed rail service connecting Los Angeles to the Bay Area. The Diridon Station site is in close proximity to parkland and other regional recreational amenities attractive to both commercial and residential tenants, it is across the street from the SAP Center (major sports and entertainment event venue) and it offers food, entertainment and other service amenities within walking distance both west of the site and east in San Jose’s downtown.
“This major investment will catalyze the Diridon Station Master Plan area adopted by the City of San Jose last year, bringing a significant number of new, high quality jobs to the area,” said Don Little, Senior Vice President of Trammell Crow Company’s Northern California Business Unit. “New retail and amenities will further activate the entertainment district around the SAP Arena. This project represents smart growth around the most robust transit hub in the Silicon Valley.”
About Bentall Kennedy
Bentall Kennedy is one of North America’s largest real estate investment advisors and one of its foremost providers of real estate services. Bentall Kennedy serves the interests of more than 550 institutional clients and investors across office, retail, industrial, and multi-residential properties throughout Canada and the U.S. Bentall Kennedy is a member of UN PRI and is a recognized global leader in Responsible Property Investing. Bentall Kennedy, a Sun Life Investment Management company, includes Bentall Kennedy (U.S.) Limited Partnership and Bentall Kennedy (Canada) Limited Partnership. For more information, visit www.bentallkennedy.com.
Multi‐Employer Property Trust (MEPT) is a $7.3 billion, open‐end commingled real estate equity fund that invests in a diversified portfolio of institutional‐quality real estate assets in 25 major metropolitan markets across the U.S. Founded in 1982, MEPT is owned by more than 320 institutional investors, including 17 multi-employer and public employee plans in Northern California. Signatory to the UN Principles for Responsible Investment, MEPT is recognized as a pioneer in Responsible Property Investing (RPI) and has been consistently top‐ranked in the U.S. by GRESB for its environmental performance. For more information, visit www.mept.com.
About Trammell Crow Company
Trammell Crow Company (TCC), founded in 1948, is one of the nation’s leading developers and investors in commercial real estate. The Company has developed or acquired nearly 2,600 buildings valued at nearly $60 billion and over 540 million square feet. As of June 30, 2015, TCC had $6.0 billion of projects in process and $3.7 billion in its pipeline.
Trammell Crow Company’s teams are dedicated to building value for its clients with professionals in 16 major cities throughout the United States. The company serves users of and investors in office, industrial, retail, healthcare, multi-family residential and mixed use projects. For those who occupy real estate, TCC can execute the development or acquisition of facilities tailored to meet its clients’ needs. For investor clients, the company specializes in joint venture speculative development, acquisition/re-development ventures, build-to-suit development, or providing incentive-based fee development services.
TCC is an independently operated subsidiary of CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, and the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). For more information visit www.TrammellCrow.com.