Goodwill buys big San Jose office building in expansion for nonprofit

SAN JOSE — Goodwill of Silicon Valley has bought a big — and empty — San Jose office building that the charitable organization aims to use for expansion and its new headquarters.

The high-profile nonprofit disclosed that it paid $17 million for the office building, which is at 1600 Technology Drive in north San Jose.

The building will house Goodwill’s headquarters and an array of innovative job training and employment opportunity services, including the Career Technical Education Program, which provides no-cost skills training to help a variety of local residents.

The new Goodwill office hub, located near San Jose International Airport, is part of an expansion effort and renovation plans on the nonprofit’s part. A $10 million gift from MacKenzie Scott supported Goodwill’s purchase deal.

At present, Goodwill’s headquarters are in an aging 75-year-old warehouse complex on North Seventh Street that once was a Levi Strauss manufacturing center.

The old warehouse also serves as a hub for collecting, sorting and distributing donated goods for its network of thrift stores.

“Goodwill of Silicon Valley’s mission to help people overcome employment barriers is at the heart of this real estate decision,” said Erik Hallgrimson, Chairman of the Board of Goodwill Silicon Valley. “Our new headquarters will enable us to fulfill our mission more efficiently, befitting our immediate and future needs.”

The office building that Goodwill has bought had a value of $92.4 million as of January 2024, according to documents on file with the Santa Clara County Recorder’s Office.

That means Goodwill paid a jaw-dropping 81.6% less than the current assessed value of the office building, which totals 198,000 square feet.

Goodwill of Silicon Valley intends to immediately begin relocating its administrative and programmatic operations to the new building on Technology Drive.

Other local nonprofit organizations will be able to operate in any vacant space in the building that Goodwill doesn’t use.

Goodwill intenfs to construct a new, state-of-the-art warehouse facility within three years, replacing its current operations on North Seventh Street, which no longer accommodates the organization’s growth.

The South Bay community’s support played a big role in helping Goodwill to gain the resources for the office property deal, the nonprofit said.

“Thanks to this support, combined with fiscal prudence and close attention to operational details, we are in a strong financial position to make this acquisition, which will benefit the community for years to come,” said Chris Baker, acting chief executive officer of Goodwill of Silicon Valley.