Site Development Permit Application Submitted for 1M-Square-Foot Commercial Development in San Jose
SAN JOSE, Calif. (January 8, 2018) – TMG-VOP Julian, LLC, a joint venture between TMG Partners of San Francisco and Valley Oak Partners, LLC of San Jose, announced today a Site Development Permit Application to the City of San Jose to develop just over one million square feet of commercial office near the Diridon Station in Downtown San Jose. The submittal follows San Jose City Council’s approval on Tuesday, December 12 of the site’s re-zoning from Light and Heavy Industrial to Transit Employment Center (TEC), conforming to the City’s General Plan designation.
“This part of San Jose has the potential to serve as the new focal point of Silicon Valley,” said Matt Field, CIO at TMG Partner, and Steve Fisher, principal of Valley Oak Partners, LLC, in a joint statement. “Our belief is that Diridon Station, in particular, will activate this historically industrial part of downtown San Jose into a bustling, inclusive, economic powerhouse. We are thankful to the City for sharing this vision with us, and we look forward to enhancing and improving the site in a way that conforms with the City’s General Plan.”
The site, identified as 440 West Julian Street, is comprised of approximately 5.49 acres and is located within the Diridon Station Area Plan. The entire site is bounded by North Autumn Street to the west, West Julian Street to the south, and the recently opened Autumn Parkway to the east. It is partially occupied by industrial buildings and parking lots with 287 total spaces. The surrounding area is experiencing rapid changes as Google has begun amassing properties, some of which are being negotiated to purchase from the City and other agencies, to create a transit-oriented village consisting of six to eight million square feet of offices.
The proposed project, designed by New York-based Kohn Pedersen Fox Associates, lead designers of Hudson Yards in New York City, includes the development of three six-story office buildings and below-grade parking. The three buildings are 157,000 square feet, 367,000 square feet, and 499,000 square feet respectively, and have views towards Downtown San Jose. Each building will feature floor plates ranging from 27,000 square feet to 90,000 square feet, as well as 15-foot floor-to-floor heights, and large private terraces on every floor.
The development has immediate pedestrian accessibility to the Guadalupe River Park across Autumn Parkway, and is a ten-minute walk to the restaurants at San Pedro Square and the financial center of San Jose. It is also a short walk to Diridon Station, San Jose’s intermodal transportation hub consisting of Caltrain, VTA Light-Rail, along with the planned BART and California High Speed Rail station, and is proximate to the SAP Center arena.
Mark Schmidt, the project’s marketing agent and managing director at CBRE Group, Inc.’s San Jose office, stated, “KPF’s unique architecture, with its extra-high, multi-faceted window line, multiple-floor outdoor terraces, and large floorplates bring a product to the market that San Jose has never seen before. The project is ideal in meeting the needs of today’s large technology users.”
TMG continues to increase its footprint in the San Jose office market. In 2013, TMG and Fortress Investment Group purchased an eight-building, 810,000-square-foot campus from Cisco Systems. The partnership subsequently sold four buildings to an investor in late 2014, while simultaneously executing a major renovation of the building exteriors, interiors and common area amenities on the balance of the project.
Reintroducing the remaining four buildings to the market in late 2014 as Champion Station, TMG closed on the sale of the campus in the summer of 2016 in two separate transactions, one building to a corporate owner-user and three buildings to an investor. In August 2016, TMG acquired 2460 and 2480 N. First Street, a two-building, 148,000-square-foot commercial property that TMG is currently renovating and leasing.
About TMG Partners
TMG Partners, founded in 1984 and headquartered in San Francisco, is a full-service real estate development and management company. TMG has developed more than 25 million square feet of property throughout the San Francisco Bay Area, including Emeryville, Marin City, Novato, Palo Alto, San Bruno, San Jose and San Francisco. One of the most active developers in this area, the company has developed a variety of office, retail, residential and industrial properties, ranging from office campus and multi-story properties in urban, infill locations to mixed-use retail and single-story suburban buildings. For detailed information, visit www.TMGPartners.com.
About Valley Oak Partners
Valley Oak Partners, LLC is a San Jose based real estate development and investment firm located in the historic Del Monte Plant 51 office on The Alameda. The company focuses on entitlement, investment, and construction of commercial and residential real estate. Valley Oak Partners was founded in 2008 and since that time has acquired, re-developed, or is processing entitlements on over 2,300 residential units and approximately 1,500,000 square feet of commercial development. For more information, visit: www.ValleyOakPartners.com.
About Kohn Pedersen Fox Associates
Kohn Pedersen Fox Associates (KPF) is an international practice headquartered in New York, with offices in London, Shanghai, Hong Kong, Seoul, and Abu Dhabi. The firm provides architectural design, programming, urban design, master planning and graphic design services for clients in both the public and private sectors. Their extensive portfolio includes a wide range of projects, from civic and cultural spaces to hotel, residential and office towers to educational and laboratory facilities. KPF’s strong body of work has garnered over 300 awards and earned the firm recognition as one of the most respected architectural design practices in the world. For more information, visit: www.KPF.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. For more information, visit www.cbre.com.