Chip company buys big chunk of north San Jose land next to local offices

SAN JOSE — SK hynix America, a Silicon Valley unit of a big
South Korea-based semiconductor company, has bought a large chunk
of land in north San Jose that’s right next to its regional
offices.

The company paid $31 million on Nov. 28 for 11 acres of land,
according to Santa Clara County property records. SK hynix already
occupies a two-building office campus at 3101 N. First St. next to
Montague Expressway and directly adjacent to the just-purchased
vacant lot.

It’s unclear if the company will attempt to expand its
operations onto the empty land, which is located on the north side
of Montague Expressway, just west of North First Street and just
east of the Guadalupe River.

“This is a fantastic site,” said Mark Zamudio, an executive
vice president with Colliers International. “SK hynix has enough
land to create an incredible campus, if that’s what they want to
do.” Zamudio and Colliers broker Greg Galasso represented the
seller in the deal, Hyundai Merchant Marine.

However, it doesn’t appear that the semiconductor company
intends to attempt an expansion right away on the vacant property,
according to a broker with JLL, a commercial real estate firm that
helped arranged the deal.

“They don’t have any immediate plans to develop the land,”
said Sofi Choi, a JLL senior vice president. Choi teamed up with
JLL broker Steven Chon to represent the SK hynix in the
transaction.

SK hynix didn’t respond to requests from this news
organization for comment.

It’s possible the company wanted to assure itself of the
potential for expansion if it chooses to do so in the future.

“The purchase allows SK hynix to control a large piece of land
right next to where they are located,” Choi said.

Tech titans such as Google, Apple, Facebook and Amazon, through
a combination of property purchases and building leases, have
dramatically expanded their respective footprints in Silicon Valley
and adjacent areas such as Fremont and San Francisco.

As a result of this activity, the companies have gobbled up
large swaths of property in Santa Clara County and elsewhere.

Nevertheless, one thing is certain: Brokers believe SK hynix has
managed to grab one of the best pieces of undeveloped property in
north San Jose.

“It’s a fabulous site,” Zamudio said. “It’s a major
corner and a gateway to the North First Street area.”

Source: FS – All – Real Estate News 1
Chip company buys big chunk of north San Jose land next to local offices