By Meghan Hall
Industrial developers are always in the market for vacant land, and one of the largest developers of the asset class has managed to acquire 15.1 acres in South San Jose. In a deal that closed recently, Duke Realty purchased the property at 5977 and 6001 Silver Creek Valley Rd. for $40.2 million. According to The Mercury News, the seller was well-known developer Peery Arrillaga.
Arrillaga originally acquired the asset in 1995, according to public records, for an undisclosed amount. Currently, the land is vacant and no plans to redevelop the property are on file with the City of San Jose.
Indianapolis-based Duke Realty has been a player in the Bay Area commercial real estate market for some time now. In December of 2020, Duke Realty spent $40.6 million to acquire another two-building industrial campus, also located in San Jose. The assets are located at 5853 and 5863 Rue Ferrari and were sold by an entity affiliated with Chicago-based Blue Vista Capital Management.
Just prior to that, Duke Realty acquired two assets in Oakland for $53 million. Located at 955 Kennedy and 1905-1991 Dennison Streets, the purchase price came to about $184 per square foot. The seller of the properties is Newport Beach-based Hagar Pacific Properties.
In February of this year, Duke Realty announced its intentions to continue to expand in the Bay Area. The company, which describes itself as the “leading” domestic-only, pure-play logistics property REIT, intends to expand its regional portfolio by more than four million square feet of space. Nationwide, the company owns, maintains interest in or has under development 159 million square feet of rentable space. The company’s portfolio spans 20 major markets, including Seattle, Southern California, Houston, and others.