Google village property buys continue in downtown San Jose

Google village property buys continue in downtown San Jose


SAN JOSE — Google’s transit village project in downtown San Jose has prompted more property purchases, including some that suggest the search giant’s area of interest has begun to widen.

The property deals occurred just a few days ahead of a key San Jose City Council meeting, during which the council is slated to approve the launch of exclusive negotiations with Google for the purchase of 16 government- and city-agency-owned parcels. The parcels would be part of a land assembly for the tech giant’s proposed transit village near Diridon Station and SAP Center.

Mountain View-based Google’s plans in downtown San Jose have emerged as two groups of property investors have quietly launched a shopping spree for properties that could eventually accommodate one or more mega-campuses for tech workers, along with housing and stores.

The buyers, operating under the names TC Agoge Associates and Rhyolite Enterprises, have spent a combined $130 million in the acquisition binge, including the latest property deals, which occurred last week.

In the most recent transactions, realty firm Trammell Crow — Google’s development partner for the Google village project — bought three properties on West Julian Street north of SAP Center, and a parcel on South Autumn Street near the train station, according to Santa Clara County property records.

Until recently, the Google-related purchases, which began in late December, were primarily concentrated south of SAP Center. Several of the transactions in recent weeks, including those of mid-June, occurred north of the sports and entertainment complex in downtown San Jose.

TC Agoge Associates, an affiliate that Trammell Crow controls, paid $3.6 million to buy three properties from the David Fazekas family. The properties are at 559, 567 and 573 W. Julian St. near North Montgomery Street. Those deals closed on June 14, county records show.

On June 15, the same Trammell Crow entity paid $2.8 million for the Borch Iron Works & Welding property at 20 S. Autumn St. The sellers were John Borch, John Harold and Borch family members, county records show.

Allan Borch, owner of the Borch operations on South Autumn Street, said Trammell Crow approached his family last fall and struck a deal for the property sale at the end of 2016.

“We were thinking of closing the business anyway,” Borch said in a recent interview. “It’s bittersweet” to contemplate shutting down operations, he added.

A number of additional land sales are in the works. Trammell Crow has obtained options to buy at least four more parcels from private property owners in the area.

Jim Wagner, principal owner of Kearney Pattern Works and Foundry on South Montgomery, said his aluminum foundry has been in business for nearly a century, and he has mixed feelings about his decision to sell to Trammell Crow.

“We have had a feeling that we don’t have much of a choice about staying, especially after Trammell Crow gobbled up all the properties on the other side of Los Gatos Creek,” Wagner said in a recent interview.