USAA, SteelWave Move Ahead with Phase II of Bay Area Office Campus
- May 26, 2016
San Francisco—Seven years after the first phase of America Center was completed, developer SteelWave and its partner USAA Real Estate Co. have begun work on Phase II to add more office space, parking and amenities to the Class A office campus in San Jose, Calif.
The second phase, which will include two six-story office buildings, will bring an additional 450,000 square feet to the complex for a total of 885,000 square feet. Upon completion of Phase III, the campus will have 1.1 million square feet of Class A, LEED Gold-certified office space in the Silicon Valley. A date has not been released for Phase III, but it is projected to include a fifth office building for the site and more parking. Phase I was completed in 2009 and is 88 percent leased and serves as the headquarters for several high-tech corporations. Polycom Inc. occupies all of 6001 America Center Drive and Flextronics International Ltd. has about 175,000 square feet at 6201 America Center Drive.
SteelWave, formerly known as Legacy Partners Commercial, developed America Center, which is located in San Jose, bordering Sunnyvale, Calif., and Santa Clara, Calif., on Highway 237. The site has access to I-880 and I-680 as well as U.S. Highway 101 and is near public transit including the VTA Light Rail and ACE and Caltrain commuter trains. It is adjacent to the 175-key Aloft Hotel and surrounded by a 30-acre Open Space Preserve. Levi’s Stadium, where the San Francisco 49ers play, is also nearby.
The 70-acre property was previously owned by salt maker Cargill Inc. and used as a landfill for construction debris before it was cleaned up and built as a speculative office project by Legacy Partners. The former brownfield site has achieved LEED Gold certification.
San Antonio, Texas-based USAA Real Estate bought the site of America Center’s Phase I project and entered into a joint venture with Legacy Partners for the adjacent parcel where Phase II is being built. Legacy, now SteelWave, stayed on as development partner.
“The central Silicon Valley location, magnificent views of the San Francisco Bay, and high tech buildings and amenities make America Center a compelling property,” Steve Dunn, senior managing director of SteelWave, said in a prepared statement. “We are excited to celebrate this groundbreaking and introduce this new, large leasing opportunity to Silicon Valley’s corporate and technology users.”
In addition to the two 228,725-square-foot office buildings, Phase II will feature a fitness center, café and roof deck with putting green. Outdoor amenities will include a sports court, presentation theater/entertainment center and numerous collaborative meeting areas.
Phil Mahoney, executive managing director of Newmark Cornish & Carey, is marketing the property for lease along with Executive Managing Director Randy Gabrielson.
“America Center is in the right place at the right time,” Mahoney said in a prepared statement. “Physically, the property is located in a high-growth market bordering North San Jose and North Santa Clara, which is where southern-migrating tenants want to be. These highly sought-after markets are supply constrained with extremely limited large block availabilities. The expansion of America Center is timely – it is pointed to capture the next Silicon Valley technology titan seeking new, state-of-the-art headquarters space.”