• Mon. Nov 29th, 2021

North San Jose industrial site lures big developer

SAN JOSE — A high-profile real estate logistics firm has bought a big chunk of land in north San Jose that could wind up as a choice site for future development as an industrial center.

Prologis, acting through an affiliate, has bought a large site at a choice location a short distance from the busy interchange of U.S. Highway 101 and Interstate 880 in San Jose.

The affiliate of logistics real estate firm Prologis, Exchange 1336 Old Bayshore Highway, bought about seven acres of land in north San Jose, documents filed on Jan. 22 with Santa Clara County officials show.

The property consists of three parcels and has addresses of 1336, 1390, and 1420 Old Bayshore Highway in San Jose, according to the county records.

The just-purchased property is located in a part of San Jose that’s dotted with a hodgepodge of long-time industrial and commercial operations.

Prologis paid $22.8 million for the property, according to the public documents. The public records show that the affiliates are directly connected to the Denver offices of Prologis.

Since the advent of the coronavirus curbed the appetite for development of office buildings, retail centers, and hotels in the Bay Area, a growing number of real estate buyers have begun to scout for alternatives to purchase.

Increasingly, these investment efforts are being focused on sites that are either ready-made to lease to a big industrial user or that could be developed as an industrial complex.

San Francisco-based Prologis during 2020 produced $1.47 billion in profits and generated $4.44 billion in revenue. The full-year results also included $3.79 billion in revenue from rents.

In December 2020, Prologis owned, co-owned, or was developing 984 million square feet in 19 countries, including the United States.