Real estate: Developer that is frequent Amazon landlord buys key San Jose site where huge industrial center is planned
A veteran developer has bought a San Jose site where the firm has proposed a modern industrial complex that could attract tech, research, or manufacturing firms -- or Amazon.
SAN JOSE — A San Jose site slated for a huge industrial development that could be suitable for a logistics or e-commerce company has been bought by a veteran real estate firm whose notable tenants include Amazon.
Once developed and completed, the modern industrial complex in south San Jose could attract tech, research, or manufacturing firms — or Amazon.
Duke Realty is the buyer of the property, according to Santa Clara County public documents filed on Dec. 2. The real estate firm also has submitted a proposal to San Jose planners for a complete redevelopment of the site.
The south San Jose property has addresses of 5853 and 5863 Rue Ferrari and at present contains two buildings totaling 286,300 square feet.
The new industrial complex would total 303,100 square feet, very preliminary plans on file with the city show.
Acting through affiliate Duke Realty Rue Ferrari, Duke Realty paid $40.6 million in cash for the 17-acre site, which has ready access to an interchange of U.S. Highway 101 and State Route 85.
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 long-term economic benefits to the city including employment,” Duke Realty stated in the proposal the company filed with city planners.
Blue Vista Capital Management, a Chicago-based investment firm, sold the site to Duke Realty, county documents show.
The identity of any prospective tenants wasn’t immediately clear.
What is apparent, however, is that Duke Realty and Amazon have a significant connection since Duke Realty is frequently Amazon’s landlord.
“Duke Realty is an e-commerce-preferred developer, working with many of today’s logistics leaders to help them maximize their product storage and distribution,” the developer states on its website. Duke Realty then went on to highlight some clients: “Amazon, Weber-Stephen, Carter’s, and Dick’s.”
A September 2020 analysis on the Motley Fool investment site took note of the Duke Realty and Amazon connection.
“One thing that stands out about Duke Realty is its relationship with Amazon,” Motley Fool stated on its Million Acres page that’s dedicated to real estate analysis. “The e-commerce giant is Duke’s top tenant,” Motley Fool added.
Seattle-based Amazon has been dramatically expanding its footprint throughout the Bay Area in recent years, both with office buildings such as its tech hub in Sunnyvale as well as industrial centers.
Amazon.com Services, an Amazon delivery and commerce unit, paid $59.3 million in October for a San Jose site at 1605 S. Seventh St. where a huge industrial center has been proposed.
Motley Fool indicated that Duke Realty and Amazon have engaged in multiple endeavors.
“The companies have been working together to support Amazon’s growing logistics needs, which include building more fulfillment and sortation centers as well as last-mile delivery stations,” Motley Fool stated.
For its just-purchased south San Jose site, Duke Realty indicated in its proposal filed with the city that the developer is planning a state-of-the-art complex on Rue Ferrari.
“We intend to incorporate enhanced architecture and landscaping which will be a significant upgrade to the current facility and surrounding buildings,” Duke Realty stated in its preliminary plans.