By Meghan Hall
Nearly a year after Boston Properties joined TMG Partners and Valley Oak Partners in an effort to acquire and develop Platform 16, a major development project near Diridon Station in downtown San Jose, Boston Properties has exercised an option to purchase the project property from its development partners, a source confirmed to The Registry. Boston Properties paid $134.75 million in cash to acquire 5.4-acre the site, according to public records filed with the county.
Both TMG and Valley Oak remain on the project team as co-developers for Platform 16.
Platform 16 has been in the works for some time and is slated to be a 1.1 million square foot Class A office development. The three-building campus, designed by Kohn Pederson Fox Associates, will feature floorplates ranging from 25,000 square feet to 90,000 square feet in size, more than a dozen outdoor terraces, and on-site amenities including a fitness and wellness facility and conference center.
Google’s plans for an eight million square foot transit village and modal transportation hub are located just adjacent to the site, as is the Guadalupe River Park, retail and restaurants. There are more than 120 technology firms near Diridon Station, in addition to numerous other businesses.
“At the site of one of the biggest technology hubs in the country, Platform 16 will help companies attract and retain the best and brightest minds to the area by offering easy access to public transportation, housing, culture, food and entertainment in the heart of San Jose,” commented Boston Properties’ Executive Vice President Bob Pester when the firm first joined the project team.
Under the agreement solidified with TMG and Valley Oak Partners, Boston Properties had ground leased the land in January of last year for a term of 65 years. In February, an option became available for Boston Properties to acquire the land for the development at a fixed-cost.
“The addition of Platform 16 underscores our strategy of investing in markets with the strongest economic growth opportunities to drive strong returns and durable cash flows over time,” said Owen D. Thomas, CEO of Boston Properties in a statement. “We are delighted to expand our presence in the San Jose region and look forward to meeting the growing needs of the region’s business community.”