Chinese developer Gemdale Corporation has partnered once again with Lincoln Property Company this time on a development opportunity in Silicon Valley. The two firms have agreed to acquire the roughly 21.5 acre site in North San Jose called Midpoint@237 from Trammell Crow and Principal, who have gained approval to develop an office and manufacturing complex totaling nearly one million square feet. The Gemdale/Lincoln transaction is for the Class A office/R&D portion only, which is entitled for up to 400,000 square feet.
The transaction, which was first reported by the Silicon Valley Business Journal, was completed for approximately $28 million.
This is Gemdale’s and Lincoln’s second joint effort in the Bay Area. Their partnership in the region began in July of 2015, when the firms announced a joint venture to develop 350 Bush Street, a 19-story, 372,000 square foot Class A office tower, and 500 Pine Street, a 5-story 56,000 square foot office/retail development in San Francisco. At that time, these two projects were the first ones for Gemdale in the United States.
The North San Jose project has already broken ground on the manufacturing portion of the development in December of last year. The speculative development will be a new state-of-the-art advanced manufacturing project occupying an infill site located at the top of Silicon Valley’s Golden Triangle, visible to Highway 237 and minutes to both Moffett Park and Interstate 880.
“San Jose has become the nation’s premier destination for advanced tech manufacturing and high-value fabrication. MidPoint@237 will provide the state-of-the-art facilities that Silicon Valley manufacturers require for full-scale production of next-generation products,” said Mayor Sam Liccardo at the ground breaking.
CBRE represented both the buyers and the sellers on the transaction. Executive Vice President Rob Shannon and Senior Vice President Mike Benevento represented the buyers, and Shannon and Senior Vice President Christian Marent, represented the sellers on the transaction.