SAN JOSE – Real estate investors associated with the Bay Area and Chicago have bought a large plot in the north of San Jose, where a developer once proposed a mixed-use area next to a busy light rail line.
Investors paid $ 28.9 million for the building and parking at 3011 N. First St. in San Jose, according to filings filed June 4 with the Santa Clara County Registry.
According to county and state records, the buyer was an affiliate company led by two investment and development firms: Blue Vista Capital Management in Chicago and Cannae Partners in San Francisco.
According to the county, the seller was Sand Hill Property Co. from Palo Alto. In 2015, Sand Hill subsidiary SHP-CUTE paid $ 31 million for the 9.3-acre site.
In 2018, Sand Hill Property released very preliminary development plans for a huge mixed-use community of offices, homes and retail space.
City reports do not reveal how far the proposal has come in the planning process in San Jose.
Sand Hill Property has requested a preliminary City Proposal Review for 505,000 square feet of office space, 800 residential units and 13,000 square feet of retail.
It is possible that the recently completed property purchase was made on behalf of major buyers investing in real estate around the world.
Blue Vista Capital frequently invests with major players such as “pension funds, endowments, funds, insurance companies, asset managers and corporations,” according to the Blue Vista website.
Cannes prefers to focus on properties in the Bay Area.
What was not immediately clear was whether the new owners would carry out any kind of renovation of the site.
This location is by far the preferred location in San Jose as it sits on the corner of North First Street and Orchard Parkway and next to Orchard station, which is part of one of the business areas of the regional light rail system.
Intermolecular, an electronics manufacturing company, is currently leasing a 146,200 square foot office and research facility.
Intermolecular’s leases last for several years, so properties can be a constant source of rental income for new owners.
As part of the newly completed property purchase, the buyers agreed to take on the $ 21 million mortgage previously granted for the property, according to official documents.