By Meghan Hall
Indianapolis-based Duke Realty has purchased a San Jose industrial complex with visions of creating a new, state-of-the-art facility that will bring jobs and economic activity to south San Jose. In a transaction that closed on December 2nd, Duke Realty purchased 5853 and 5863 Rue Ferrari for $40.6 million. The seller, according to public documents, was an entity affiliated with Rue Ferrari Creative LLC and Chicago-based Blue Vista Capital Management, an investment firm.
The property was last sold in August of 2019 by Atlanta, Ga.-based Gibson Avenue Capital LLC for $30.75 million. Together, the two buildings total about 287,000 square feet, according to a leasing flier released by brokerage firm CBRE. 5853 Rue Ferrari is the larger of the two buildings, at 155,000 square feet, while 5863 Rue Ferrari totals 132,201 square feet. The buildings were available for direct lease beginning on December 1st and feature dock high and grade level loading, 8,000 amps and 480 volts of electrical capacity, clean room and lab infrastructure.
Onsite amenities also include a volleyball court, basketball court, parking, direct access to Coyote Creek and biking and jogging trails. A large patio is also available to tenants.
“Surrounded by abundant glass lines and a massive metal and glass roll up door that opens via remote switch to the exterior, the patio is transformed into an outdoor garden creating a space for all to actively enjoy and flourish in the best of what San Jose has to offer,” explains leasing documents.
The property features an all-new breakroom with solid surface countertops, wood cladding and large glass roll-up doors for indoor-outdoor connection.
“The best solutions are born while enjoying a meal together or freely exchanging the ideas with the colleagues,” the flier states. “The all new break room is finished open to structure offering high ceilings and acoustic light fixtures deliver not only visual interest but also more privacy. The vibrant colors and natural wood elements bring life to the space ideal for company-wide gatherings or quick employee refueling.”
In all, the property totals just over 17 acres. At the beginning of November, Duke Realty filed preliminary plans with the City of San Jose that would ultimately demolish the two existing buildings and construct 303,117 square feet of speculative, tilt-up industrial uses. The plans include onsite passenger vehicle parking, internal circulation drive and truck trailer parking.
