An industrial developer's plan for a central Silicon Valley site is officially taking shape.
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Bridge Development Partners has broken ground on a two-building, 722K SF industrial campus in Milpitas it will call Bridge Point Silicon Valley.
The developer acquired the 35.4-acre, undeveloped site at 205 North McCarthy Blvd. from Hudson Pacific Properties last year for $78.1M. That was its first Bay Area development following a number of projects in Los Angeles County and the Inland Empire region.
Bridge's Milpitas complex will sit comfortably along the I-880 corridor about half a mile from the interstate, representing a potentially attractive location for multiple user types, including neighboring Amazon. Since Bridge bought into the area in July, so did the e-commerce giant, agreeing in November to lease a combined 343K SF across three buildings that are also on North McCarthy Boulevard.
"The city of Milpitas and Silicon Valley as a whole have a unique blend of users, from Fortune 100 to traditional logistics and e-commerce, and we think this facility in Milpitas will satisfy the requirements of both types of tenants," Bridge Development Partners Vice President Greg Woolway said.
Designed by Irvine-based Herdman Architecture + Design, the campus could accommodate multiple tenants, Woolway said, adding that Bridge is still finalizing a deal with a general contractor. One building will measure 333.8K SF, while the other will come in at 388.2K SF.
Bridge Development Partners plans for both structures to have 36-foot clear ceilings and 185-foot truck court depths while offering future users an unusual degree of accessibility.
"Being located at the corner of I-880 and [CA-237] provides very easy north-south and east-west accessibility for the project, both for tenants and distribution and as an employee base," Woolway said.
JLL's Jason Ovadia and Greg Matter are marketing the project to prospective tenants for Bridge, which has over 12.5M SF across 17 projects in its California pipeline.
Like industrial real estate in Los Angeles and the Inland Empire, Bay Area properties accommodating the sector have mostly performed at a high level in this cycle. The vacancy rate in Q3 2019 was 5.2%, according to JLL.
CORRECTION, Jan. 9, 8:20 A.M. PT: A previous version of this story misstated the size of Bridge Development Partners' total project pipeline. The story has been updated for accuracy.
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