SAN JOSE — A choice parcel in north San Jose that was recently bought by a veteran realty firm is slated for a redevelopment that would create a modern industrial center that could attract companies such as Amazon.
Overton Moore Properties, a high-profile real estate firm, recently bought roughly 6.5 acres on Concourse Drive in north San Jose and now is pushing forward with preliminary plans to redevelop the property.
The real estate company wants to develop an industrial building totaling about 126,700 square feet on the site, a proposal on file with San Jose city planners shows.
The building Overton Moore bought has addresses ranging from 1953 to 1965 Concourse Drive, according to Santa Clara County public records filed on Oct. 13.
Overton Moore, acting through affiliate 1953 Concourse Drive, paid $13.5 million for the building and land, county documents show.
Newmark commercial real estate brokers Steven Golubchik, Edmund Najera, Seth McKinnon, Darren Hollak, and Jack Phipps brokered the deal, the real estate firm said.
“Concourse Tech Park is ideally located within proximity to some of the world’s most prominent technology companies,” Najera said.
The site’s location could be attractive to logistics or delivery firms such as Amazon.
The property is situated roughly halfway between interstate highways 880 and 680 and is a short distance from Montague Expressway.
“We are delighted about the Concourse Drive acquisition,” said Will McPhee, an executive with Overton Moore Properties. “This is our second value-add opportunity in the Bay Area this year.”
The new owner must contend with noticeable vacancies in the building. One property brochure listed vacancies totaling about 51,000 square feet.
Overton Moore’s major project in the vicinity is Pacific Commons South, a vast industrial and manufacturing hub in Fremont that is expected to consist of 10 buildings that together will total 1.72 million square feet when construction is complete.
Despite sluggish leasing amid the coronavirus outbreak, commercial real estate experts believe investors still hunger for Silicon Valley properties in choice sites.
“Companies are ready to invest in Silicon Valley for the long term,” Newmark, the commercial real estate firm, said. “As the economy begins to recover, Silicon Valley is anticipated to recover faster than other urban markets.”