LBA Plans New San Jose Developments at Trimble Road Location

By Michele Chandler

A hotel and other development could be coming to a tract of land in San Jose on the corner of Trimble Road and Orchard Parkway. LBA Realty LLC, a full service real estate investment and management company with a diverse portfolio of office and industrial properties in major markets throughout the western United States, has proposed the development on 14 acres of a 68-acre site, according an application submitted to the city on June 21.

The Irvine, Calif.-based firm’s filing includes a proposal for a 250-room hotel in addition to 100,000 square feet of commercial uses on the 14 acres that are now under consideration for rezoning and development.

The LBA Realty project’s location, at 350 W. Trimble Road and 370 W. Trimble Road, sits just west of a site owned by tech giant Apple that the city of San Jose approved for a 4 million square foot campus development in January 2016. The global computer juggernaut has not announced plans on when it may commence construction on that 86-acre site.

LBA Realty bought the Trimble Road properties in San Jose in March of 2017 for $130 million, according to public documents. In addition to vacant land, the site includes industrial buildings, including one at 370 W. Trimble Road that’s occupied by Lumileds, which manufactures and distributes LED and automotive lighting products.

According to documents on file with the city, the developer wants to rezone the property from the current Industrial Park Planned Development IP(PD) Zoning District to Commercial Neighborhood Planned Development CN(PD) Zoning District to allow approximately 100,000 square feet for commercial uses and a hotel on a 14-acre portion located in the north-eastern corner of the site.

“At this time, the development plans for this site are still very preliminary, and we have not yet received a formal submittal or any additional materials regarding the design or construction of the hotel,” said city spokesman Ned Thomas in an email.

“If the proposed Planned Development Rezoning is approved, the applicant would need to submit a Planned Development Permit (PD Permit) … to effectuate the zooming and provide details regarding proposed development of the site,” Thomas said.

An affiliate of the developer, an entity called LBA RVI-Company, also obtained a $91.3 million construction loan from Bank of America, which is a type of loan typically used to finance a development project, according to a report from the San Jose Mercury News.

In response to a request for comment, San Francisco architecture firm Ken Kay Associates, which is listed as the proposal’s Master Planner, referred The Registry to the developer.

A woman who answered the phone at LBA Realty’s offices last week said she could not comment about the proposal.

The proposed development site is in close proximity to San Jose’s International Airport, which sits just across U.S. Highway 101, a major throughway and connector in across Silicon Valley. It is also close to a site that New York City-based Brookfield Property Group sold earlier sold earlier this month for $48.5 million. The 118,000 square foot property on 2300 Orchard Parkway in San Jose was flipped to a Chinese entity, Han’s Holdings, affiliated with Han’s Laser Technology Industry Group after Brookfield purchased it in the first quarter of 2017.

San Jose officials are encouraging new commercial and residential development in north San Jose, which could benefit the Silicon Valley city and the region more broadly as the region’s tech firms continue to expand. Alphabet-owned internet search giant Google and the city of San Jose are discussing a potential mixed-use complex blending office, retail, mixed-use and research and development operations on land near downtown San Jose’s Diridon Station.

West Coast Commercial Real Estate News