The positioning in San Jose, the place an enormous industrial middle is deliberate, is bought
SAN JOSE – A San Jose location slated for a huge industrial development that could be fit for a logistics or e-commerce business was purchased by a veteran real estate company, one of whose notable tenants is Amazon.
Once developed and completed, the modern industrial complex in southern San Jose could attract technology, research, or manufacturing companies – or Amazon.
Duke Realty is the buyer of the property. This is evident from the Santa Clara County public documents filed on December 2nd. The real estate company has also submitted a proposal to the San Jose planners for a complete redevelopment of the property.
Located in southern San Jose at 5853 and 5863 Rue Ferrari, the property currently comprises two buildings with a total area of 286,300 square feet.
The new industrial complex would be a total of 303,100 square meters, preliminary plans are available at the city exhibition.
Duke Realty, through its subsidiary Duke Realty, paid Rue Ferrari $ 40.6 million in cash for the 17-acre site, which provides access to an interchange between US Highway 101 and State Route 85.
The development of the property could create a significant job and economic hub for San Jose.
“This industrial facility has the potential to attract manufacturing, R&D, and / or distribution uses that will provide the city with long-term economic benefits, including employment,” said Duke Realty in the proposal the company submitted to city planners.
Blue Vista Capital Management, a Chicago-based investment firm, sold the location to Duke Realty.
The identity of potential tenants was not immediately clear.
However, it is evident that Duke Realty and Amazon have a significant connection, as Duke Realty is often the landlord of Amazon.
“Duke Realty is an e-commerce preferred developer who works with many of today’s logistics companies to help them maximize their product storage and distribution,” the developer explains on his website. Duke Realty then highlighted a few customers: “Amazon, Weber-Stephen, Carter and Dick”.
An analysis in September 2020 on the Motley Fool investment page identified the connection between Duke Realty and Amazon.
“One of the things that stands out about Duke Realty is its relationship with Amazon,” said Motley Fool on his Million Acres real estate research page. “The e-commerce giant is Duke’s top tenant,” added Motley Fool.
Seattle-based Amazon has dramatically expanded its presence across the Bay Area in recent years, with both office buildings like the Sunnyvale Technology Center and industrial centers.
Amazon.com Services, a shipping and trading unit of Amazon, paid $ 59.3 million in October for a San Jose location on 1605 S. Seventh St., where a huge industrial center was proposed.
The Motley Fool stated that Duke Realty and Amazon made several efforts.
“The companies have worked together to meet Amazon’s growing logistics needs, including building more fulfillment and sorting centers and last-mile delivery stations,” said Motley Fool.
For its newly acquired location in south San Jose, Duke Realty stated in its proposal submitted to the city that the developer is planning a state-of-the-art complex on Rue Ferrari.
“We intend to incorporate improved architecture and landscaping that will be a significant improvement on the current facility and surrounding buildings,” said Duke Realty in its preliminary plans.