SAN JOSE — A veteran real estate company whose specialty is industrial properties of a type that could attract Amazon has grabbed a big chunk of empty land in northeast San Jose near the Berryessa BART Station.
Terreno Realty has bought a 7.2-acre site at 1300 Berryessa Road from a group led by principal executives of Ferma Corp., a Newark-based demolition contractor.
Acting through affiliate Terreno Berryessa, the real estate firm paid $23 million for the property from SRDC, an affiliate headed by Ferma executives Roy Ferrari and Donald Ferrari, documents filed Oct. 29 with the Santa Clara County Recorder’s office show.
Terreno bought the property in an all-cash transaction, according to the public files.
“This is a really good location for development,” said Ralph Borelli, principal executive and broker with Borelli Investment, a real estate firm.
Terreno Realty buys, owns and operates industrial properties in the Bay Area, Los Angeles, northern New Jersey, New York City, Seattle, Miami and Washington D.C.
Numerous companies and real estate investors have become increasingly enticed by industrial properties in the wake of the coronavirus outbreak.
The economic uncertainties unleashed during the pandemic have prompted more people to engage in online commerce. That, in turn, has intensified interest in sites that could support e-commerce activities such as warehouses, packaging handling facilities and logistics centers that could attract tenants or owners such as Amazon.
Terreno has wide-ranging ties with Amazon, according to a February 2021 report on Terreno produced by Fitch Ratings, a credit ratings agency. At the time of the report, Amazon accounted for 5.4% of Terreno’s annual base rent revenue, according to Fitch.
“The company’s largest tenant is Amazon.com,” Fitch Ratings stated.