Platform 16 is a 1.1 million-square-foot class-A office project that is adjacent to Google's transit village (credit: TMG).
SAN JOSE—Boston Properties Inc. announced today that it has entered into agreements with an affiliate of San Francisco-based TMG Partners and Valley Oak Partners to acquire and develop Platform 16, an urban campus near Diridon Station in downtown. Platform 16 is a 1.1 million-square-foot class-A office development located on a 5.4-acre site that is adjacent to Google's planned 8 million-square-foot transit village and Diridon Station, the largest multi-modal transportation hub in the Bay Area consisting of Caltrain, VTA light-rail, the ACE train, and the planned BART and high-speed rail lines.
The planned three-building campus, designed by architect Kohn Pedersen Fox Associates, will feature large floorplates ranging from 25,000 to 90,000 square feet, 15-foot floor-to-floor heights, 16 large outdoor terraces, and multiple indoor and outdoor workspaces as well as on-site amenities including a large fitness/wellness facility and conference center. The project will have immediate access to the adjacent Guadalupe River Park, and various retail and restaurant amenities.
“We are delighted to collaborate with TMG Partners to bring this project to life,” said Bob Pester, executive vice president for Boston Properties. “At the site of one of the biggest technology hubs in the country, Platform 16 will help companies attract and retain the best and brightest minds to the area by offering easy access to public transportation, housing, culture, food and entertainment in the heart of San Jose.”
The area near Diridon Station has become one of the region's most prominent locations as it is home to more than 120 technology firms as well as consulting and financial organizations.
“I'm pleased that Boston Properties and TMG Partners will be co-developing this significant project and thank them for their investment in our city,” said San Jose mayor Sam Liccardo. “This planned development will help bring thousands of jobs into our city center with easy access to public transit, and include a number of public space improvements that will help connect the Guadalupe River Park to Platform 16 and the rest of the Diridon Station area.”
Boston Properties expects to begin demolition and site improvements in the spring of 2019, allowing for a groundbreaking in mid-summer. The project could be completed as early as 2021.
“TMG and Boston Properties share the vision of a modern office campus that addresses the top priorities of today's growing companies: a location uniquely transit-accessible, access to affordable housing with San Jose the number one housing-to-jobs ratio in the Bay Area, and a facility that promotes collaboration and efficiency through large floorplates and multiple outdoor spaces,” said Matt Field, CIO of TMG. “The building's location will also allow employees to enjoy an exciting urban environment with the adjacent SAP Center, San Pedro Market, and the wide variety of cultural, culinary and entertainment experiences in downtown San Jose.”
Boston Properties has decades of experience developing innovative office space for the Bay Area's top technology companies. Last year, the company opened San Francisco's new icon, Salesforce Tower, which is 100% leased. TMG Partners is one of the Bay Area's leading developers with more than 30 million square feet of office, residential, retail and mixed-use projects developed since 1984. Boston Properties and TMG Partners previously collaborated on the 680 Folsom Street project in San Francisco. The project was recognized for its elegant yet functional design and is home to the headquarters of Macy's.com, Riverbed and Anaplan.
Under the terms of the agreements, Boston Properties has ground leased the land from TMG and its partner, Valley Oak Partners for a term of 65 years. In February 2020, the company will have an option for 12 months to acquire the land at a fixed cost.
“The addition of Platform 16 underscores our strategy of investing in markets with the strongest economic growth opportunities to drive strong returns and durable cash flows over time,” commented Owen D. Thomas, CEO of Boston Properties. “We are delighted to expand our presence in the San Jose region and look forward to meeting the growing needs of the region's business community.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
