City of San Jose Sells 1.4 Acre Parcel for $12.8MM

San Jose, Shea Properties, Ivanhoe Cambridge, Creative Center for the Arts, SV Creates

The city of San Jose announced yesterday the sale of a parcel located at 167-193 East Santa Clara Street to an entity called SJSC Properties LLC for $12.8 million, or just over $207 per square foot. The seller was the successor agency to the Redevelopment Agency of the City of San Jose, which had obtained the parcel between 2001 and 2007. The 1.4-acre site sits just across the street from San Jose’s city hall in downtown San Jose.

Los Angeles-based Symphony Development had made an offer in 2012 to purchase the site for $4.25 million. That sale was never approved by the city, however, and the deal fell through.

The 61,650 square foot parcel today has several uses, including property use agreements with several construction companies to allow temporary parking and staging areas on the property. An automated car washing facility is also present at the location on an interim basis.

From February to September of last year, the Oversight Board and State Department of Finance gave the successor agency the green light to dispose of the parcel through the Successor Agency’s Long Range Property Management Plan. This plan called for an open solicitation of and direct sale processes as methods of the parcel’s disposition.

In March of this year, the successor agency contacted over 300 brokers, developers and property owners in an effort to market the property. At the the time, the agency had set a base minimum bid at $5,250,000. The offers were due by May 6th.

Seven offers were received, of which the SJSC Properties was the highest at $12.8 million, resulting in a recommendation by the oversight board to approve the sale.

West Coast Commercial Real Estate News