SCVTA To Release Four Parcels for Joint Development Projects in Silicon Valley

SCVTA, Silicon Valley, commercial real estate news, Santa Clara Valley Transportation Authority, San Jose, Mountain View, Milpitas, Fremont
North Coach Division facility in Mountain View, courtesy of the SCVTA
North Coach Division facility in Mountain View, courtesy of the SCVTA
North Coach Division facility in Mountain View, courtesy of the SCVTA

By Robert Carlsen

The Santa Clara Valley Transportation Authority has released details on four parcels it plans to sell or lease to developers as part of its Joint Development Policy, which says it aims to “generate revenue, carry out transit-oriented development and increase ridership on its transit system.”

[contextly_sidebar id=”o3BvDoXN89GlltJsGkA5tIGYhFnyEu2K”]The policy, which was aggressively revised in 2009, promotes public-private partnership developments that “provide the appropriate framework to maximize the respective economic values of each real estate asset through consensus-driven, site-appropriate development that also increases transit ridership, creates vibrant community assets and enhances the long-term life of VTA’s facilities,” according to the SCVTA.

At a recent public presentation at the SCVTA’s headquarters located off an active apartment and office construction zone on North First Street in San Jose, Jennifer Rocci, senior planner, and Bijal Patel, director of real estate, went over the governmental processes that developers must follow for four of the 50-plus parcels that make up the authority’s current asset portfolio, some of which have already been sold or leased or are being held for future offerings. The sites range in size from 10,600 square feet to 122 acres and include VTA’s North First Street office buildings located at 3331 North First Street.

Rocci indicated that the sites can be leased within two categories: seasonal use, such as a farmer’s market, or a joint development for long-term ground-lease structures. Steps include a SCVTA Board of Directors approval of a recommended developers’ request for proposal, approval of an exclusive negotiation agreement and entrance into a ground lease or a combination of a ground lease and purchase and sale agreement.

“This is an important step that we are taking. We have an extensive portfolio of assets, so we’re taking it a few at a time,” said Nuria Fernandez, who took over as general manager of the SCVTA in January.

The four sites include:

* The 16.9-acre North Coach Division facility at 1235 La Avenida St. off Highway 101 in Mountain View, which currently includes administrative/operations and maintenance buildings and parking for its 286 employees. Requests for proposals are anticipated to be released mid-November with a developer selected in spring 2015.

* A one-acre undeveloped corner just east of the future Milpitas BART station at Montague Expressway and Capitol Avenue near the Great Mall in Milpitas. The station, part of the four-station, 16-mile Berryessa Extension from Fremont to San Jose, is currently undergoing track, systems and station construction, which will continue until 2016. Completion is scheduled for 2018. According to Patel, the SCVTA’s interest in the site was not known publically before the presentation. An office building or small hotel is envisioned for the site, she said.

* A three-site, 13.1-acre portion of the Tamien light-rail and Caltrain stations at 1197 Lick Ave. in San Jose. The sites are located on both the west and east sides of Guadalupe Parkway, though Patel said the current plan is to consolidate all parking on the west side with a new garage. The “phase” project will open for RFPs in summer or fall 2015. Patel said development could include 30 to 40 townhomes with 290 to 360 apartment wrap units.

* The fourth parcel, the 122.3-acre Cerone Division facility at 3990 Zanker Road near Highway 237 in San Jose, was introduced at the presentation, but soon after was taken off the list for the time being. Current use is heavy industrial with a repair shop, paint shop, central warehouse, component rebuild room, tire shop, bus wash and fuel islands, as well as parking for 412 employees.

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