San Jose job hub may sprout at vast site after project lands key loan

SAN JOSE — A job hub could sprout at a San Jose site where a veteran developer has landed a loan to enable the construction of a vast commercial complex.

Hines, one of the nation’s largest real estate firms, has obtained a $120.3 million loan to finance the construction of Edenvale Industrial Park, according to Affinius Capital, which provided the funding. JLL, a commercial real estate firm, arranged the funding.

Edenvale Industrial Park, a south San Jose advanced manufacturing and industrial complex at 550 Piercy Road totaling 636,000 square feet, concept. (HPA)

Edenvale Industrial Park, a 636,000-square foot advanced manufacturing and industrial complex at 550 Piercy Road in south San Jose, concept. (HPA)

“The property can service both warehouse and advanced manufacturing tenants and is strategically positioned to provide convenient access to Silicon Valley and the Bay Area,” said Affinius Capital managing director Eric Cohen.

Construction is underway at the industrial park, which is located in south San Jose near the interchange of U.S. Highway 101 and State Route 85 and the interchange of 101 and Silicon Valley Boulevard.

Edenvale Industrial Park, an advanced manufacturing and industrial complex at 550 Piercy Road in south San Jose totaling 636,000 square feet, concept. (HPA)

The industrial park will total about 635,800 square feet and is expected to be built in stages.

CBRE, a commercial real estate firm, will scout for tenants to occupy the project. CBRE brokers Chip Sutherland and Brian Matteoni are heading up the marketing and leasing efforts for the complex.

“Leasing activity and demand for best-in-class industrial space continues to be strong in Silicon Valley due to the explosive organic growth of data server, artificial intelligence, cloud computing and smart automobile solutions,” said Matteoni, a CBRE executive vice president.

Located at 550-650 Piercy Road in San Jose, the real estate complex will consist of three buildings, according to Hines.

“Edenvale Industrial Park will meet the demand from advanced manufacturing and industrial users” for modern spaces, said Hines managing director Sam Cheikh.

San Jose’s Edenvale district is home to an array of businesses, including advanced manufacturing, medical and nanotechnology companies.

The new project and the prospect that it could entice job-creating tenants offer a hopeful counterpoint to the numerous empty office spaces that dot the Bay Area.

The advanced manufacturing and industrial sectors have been relative bright spots in an otherwise forbidding landscape for commercial real estate in the Bay Area.

The project is expected to be completed and available for occupancy sometime during the July-through-September third quarter of 2025.

“With a campus-like setting and flexibility to accommodate a range of users, this modern product will aim to capture the growth of tenants in the market,” Hines executive Cheikh said.

Originally Published: July 25, 2024 at 5:30 a.m.

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