SAN JOSE — A huge tech campus has moved closer to reality now that a Canadian pension board has teamed up with a big developer to jointly build the transit-oriented project in downtown San Jose.
The Platform 16 office complex is now being jointly developed by Boston Properties and Canada Pension Plan Investment Board. CBRE, a commercial real estate firm, is seeking tenants for the new campus.
Once complete, the campus would total 1.1 million square feet and sprout near Autumn Parkway and West Julian Street a short distance from the Diridon train station in downtown San Jose.
Potentially 7,000 people could work at the campus, according to CBRE brokers Sherman Chan, Mark Schmidt, Mike Charters, and Will Schmidt.
The new investment means Boston Properties will hold a 55 percent interest in the project, while the Canadian pension board will obtain a 45 percent interest.
“We look forward to bringing this project to market and broadening our footprint on the West Coast,” Owen Thomas, chief executive officer of Boston Properties, said in a prepared release.
Originally, the project was launched by developers TMG Partners and Valley Oak Partners. TMG and Valley Oak cobbled together the parcels needed for the project, won city approvals for the development, and bought the properties needed to create the site.
In January, Boston Properties came on board as a major player in the development. Now, the Canada pension group has teamed up with Boston Properties, the nation’s largest publicly traded office developer, to push Platform 16 to the next major stage.
“Platform 16 is ideally located in one of the largest technology hubs in the country,” Aaron Fenton, Boston Properties’ vice president of development, said in a prepared release.
Earlier this year, construction crews largely cleared out old buildings and other structures on the 5.4-acre site.
The development would be adjacent to a proposed 60-acre transit village that Google has proposed next to the train station, Boston Properties and Canada Pension Plan Investment Board noted.
Google’s game-changing development in downtown San Jose would create a community of office buildings, homes, shops, restaurants, cultural amenities, hotel facilities, entertainment centers, and open spaces where 25,000 of the search giant’s employees would work.
“We look forward to expanding our office portfolio in the dynamic Bay Area,” said Hilary Spann, the Canada pension board’s head of real estate investments, Americas.
In November 2018, Boston Properties took its first steps to create a major stake in the Platform 16 project after it bought a ground lease and obtained an option to buy outright ownership in the land needed for the project.
The ground lease transaction gave Boston Properties the option, over the stretch of a one-year period due to start Feb. 1, 2020, to purchase all of the land for the project. Boston Properties would pay roughly $134.8 million to buy the land outright, the developer said.
Construction could begin within six months, depending on market conditions, Boston Properties estimated.
If built, Platform 16 will include 16 large outdoor terraces, multiple indoor and outdoor workplaces, and a host of on-site amenities such as a large fitness and wellness facility and conference center.
The development would be perched near the banks of the Guadalupe River, and workers would have access to retail and restaurants in the vicinity.
“Platform 16 will help companies attract and retain the talent they need to support their growth,” Fenton said.