Kaiser Permanente Buys VA Clinic Site in San Jose for $25MM

By Meghan Hall

Kaiser Permanente, one of the largest integrated healthcare providers in the nation, recently unveiled its plans for a 1.1 million square foot Thrive Center in Oakland, where the company is currently headquartered. However, Kaiser is expanding throughout the Bay Area and further into the south bay with the acquisition of a family-owned parcel formerly the site of a VA clinic. In a transaction that closed on August 2nd, according to public property documents, Kaiser purchased 80 Great Oaks Blvd. for $25.14 million, or about $387 per square foot. The sellers were three families: the Carciones, Crois and Tullidges. 

The Carcione and Crois families are associated with two limited liability companies based out of Washington State, while the Tullidge family is based out of Virginia, states public documents.

The property is located in one of the southernmost neighborhoods in San Jose, just off of the Norman Y. Mineta Highway and State Route 101. Several commercial centers are adjacent to the site, including a shopping center anchored by a Lucky’s and Ross Dress for Less. The DMV of San Jose is adjacent to the parcel, and further up Great Oaks Boulevard is the Kaiser Permanente Medical Weight Management office.

According to the VA Palo Alto Health Care System (VAPAHCS) website, the VAPAHCS began operations in San Jose in 1996 through an outpatient, community-based clinic that offered primary, specialty, mental health and diagnostic services. The original clinic at 80 Great Oaks was 65,000 square feet, but in April 2016 the VAPAHCS broke ground on a new, 90,000 square foot clinic now located at 5855 Silver Creek Valley Place. The VAPAHCS received approval to enter into a 20-year lease at the site, and the clinic opened in November of 2018.

What Kaiser hopes to do with the clinic site is unclear. However, Kaiser has more than 7,200 national and Northern California regional employees. The company’s Kaiser Permanente Thrive Center, which is to be completed in 2023, is one such project site. Kaiser Permanente is currently the largest employer in Oakland, it is estimated the Thrive Center will generate a one-time $23 million economic benefit and $15 million annually. 

In the second quarter of 2019, Kaiser spent $710 million on new offices and in ongoing investments in upgrading current facilities. Kaiser also opened new medical offices in Alexandria, Virg., Seattle, Wash., and in Petaluma and Dublin, Calif. The additions brought Kaiser’s total number of medical offices nationwide to 701, and there are more than 80 new medical offices in active design or construction phases that are expected for delivery over the next three years, according to the firm’s second quarter financial update.

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