High-profile project may be future for Great America Santa Clara land

SANTA CLARA — The next chapter for a prime plot of Silicon Valley land beneath what is now the Excellent The united states amusement park in Santa Clara is poised to be a sport-changer that could possibly be a 10 years — or just a couple of several years — in the generating.

Prologis, one particular of the nation’s most significant serious estate companies and a massive player in the enhancement of industrial, state-of-the-art manufacturing and logistics projects, lately paid out $310 million for the land, environment the stage for what could be a main progress on what Bay Spot commercial home industry experts say is a alternative spot.

“This is a golden internet site,” explained Dave Sandlin, an government vice president with Colliers, a industrial authentic estate agency. “The doorway is huge open up for that spot.”

The 112.6 acres at 1 Good America Parkway in Santa Clara that Prologis purchased could be suited for a huge array of advancement solutions, brokers say.

“I would imagine it would be a combined-use growth site with loads of household,” said Phil Mahoney, an executive vice chairman with Newmark, a professional authentic estate firm.

Numerous uses could be productive at the web site, which has fantastic access to U.S. Freeway 101, Condition Route 237, a gentle rail line and an ACE coach station behind Levi’s Stadium.

“Residential would in shape effectively there, business would suit nicely and retail would in shape properly there,” Sandlin reported.

It’s unclear specifically what will eventually increase on the house, and thrill-seekers will not eliminate the beloved amusement park right away. As part of the invest in arrangement, Prologis agreed to lease the land beneath the park back again to seller Cedar Good, which could continue on to work a topic park at the website for up to 11 decades.

But Prologis wove lots of flexibility into the leasing aspect of the deal, with the suitable to early termination if the real estate titan provides Cedar Good two years’ recognize. It’s unclear just how extended Excellent The us will proceed to function.

There is at least a person key challenge that could sluggish upcoming growth of the web-site: Place of work vacancies are sky-superior in the town of Santa Clara, brokerage companies report. At the end of March 2022, Santa Clara expert an place of work vacancy charge of 19.3%, considerably larger than the 10.6% place of work vacancy rate for all of Santa Clara County, a initially-quarter report by Colliers decided. A jaw-dropping 10.2% of the office space in the town was out there for sublease, extra than double the 3.7% sublease availability for all of the South Bay, according to the Colliers review.

“Until the workplace industry is ironed out in Santa Clara, Prologis almost certainly isn’t likely to make office buildings” on the Fantastic America web site, Mahoney mentioned.

Two other big development projects have already been proposed in Santa Clara near the Fantastic The usa web site:

— China-dependent developer Kylli is eyeing a undertaking identified as Mission Point that characteristics 3 million sq. toes of office environment place, 1,800 residences and 100,000 square ft of retail and restaurant room.

— Similar Cos. has proposed the development of 5.4 million sq. feet of workplaces, 700 lodge rooms, 1,680 residential models and 1 million sq. toes of retail, food stuff, beverage, and leisure spaces.

“Who is familiar with what will occur with both of these projects,” Mahoney mentioned. “When and until eventually every thing is ironed out with these two tasks, Prologis will probably bide its time with the Excellent The usa internet site.”

The new buy deal by Prologis also underscores the sharply rising expense of land in Silicon Valley, at least for key websites.

When Cedar Fair’s affiliate bought the web-site almost specifically three years in the past in June 2019 from the Santa Clara Redevelopment Company, the amusement park corporation paid $150.3 million, public home documents clearly show.

The $310 million Prologis paid out signifies a 106% improve — far more than double — in the worth of the land beneath the park at the time of the prior obtain.

“You see that for a whole lot of expense profits now,” Sandlin reported. “The price tag of land is going via the roof in Silicon Valley.”