Wheel and Big Developer Agreement for South San Jose Property
SAN JOSE – Two famous development companies, Peery Arrillaga and Duke Realty, have entered into an agreement to purchase a prime site of empty land in southern San José.
Duke Realty purchased 15.1 acres of land near the US Highway 101 and Blossom Hill Road interchange in southern San Jose from Peery Arrillaga, according to public ownership documents filed on October 1.
Acting through an affiliate, Duke Realty paid nearly $ 40.2 million for the plots, according to a deed filed with the Santa Clara County Registrar’s Office.
The two pieces of vacant land have addresses 5977 and 6001 Silver Creek Valley Road in San Jose, according to County Assessor’s Office records.
Peery Arrillaga, a legendary and savvy Bay Area development company, purchased the land in 1995, according to the Nexis database.
The Peery Arrillaga company, co-founded by John Arrillaga and Richard Peery, has made a big profit on the land the company has owned for decades.
The amount paid by the firm Peery Arrillaga when it obtained the land in 1995 has not been disclosed. But the most recent valuation on record, underway in mid-2021, shows the two plots to have a combined value of $ 356,900.
Peery Arrillaga has not applied for any development permits for the site, according to the city of San Jose’s planning records.
Duke Realty, based in Indiana, has increasingly become an active real estate developer and investor in the East Bay and San Jose.
“Duke Realty continues to invest heavily in coastal markets, particularly on the West Coast, where there is a need for state-of-the-art industrial space and infill redevelopment opportunities,” said Drew Hess, Leader of Duke Realty Market in Northern California. and Seattle area operations.
In December 2020, Duke Realty paid $ 40.6 million for a 17-acre site in San Jose at 5853 and 5863 Ferrari Street. A huge industrial complex totaling 303,100 square feet is planned on this site.
Duke Realty also intends to develop a modern delivery, logistics, packaging and industrial center at 2256 Junction Ave. in northern San Jose, according to city documents. It is believed that Amazon would be interested in operating on this site.
In early 2021, Duke Realty purchased two industrial buildings in Oakland that were recently modernized and 7.9 acres of land in Richmond.
For several years, online commerce has been booming in a context of changing consumption habits and following the coronavirus epidemic.
These trends, in turn, have intensified the demand to own and operate logistics, parcel handling and distribution centers that are the platforms for e-commerce.
“As we continue to see low vacancy rates in Northern California, a strategic growth market for Duke Realty, we will pursue infill locations where we can redevelop and provide tenants with best-in-class facilities,” said Michael Chukwueke, a Duke Realty. vice-president of acquisitions and development.