Hines Obtains $120M for Bay Area Industrial Project

Hines has obtained $120.3 million for the development of Edenvale Industrial Park, a 636,000-square-foot project in San Jose, Calif. Bank OZK provided the senior portion of the financing—$99.8 million, according to CommercialEdge information—while Affinius Capital originated the rest of the sum. Kevin MacKenzie and Chris Gandy of JLL arranged the transaction.

Edenvale Industrial Park is currently the largest industrial project under construction in Silicon Valley. Hines broke ground on it last month and completion is expected in the third quarter of 2025.

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Designed by HPA Architecture to achieve a LEED Silver certification, the campus is rising just off Highway 101 at 550-650 Piercy Road and comprises three buildings each with 36-foot-clear heights, dock/grade loading, LED warehouse lighting and a minimum of 4,000 amps of power. CBRE Vice Chairman Chip Sutherland and Executive Vice President Brian Matteoni spearhead leasing at the property.

The 45-acre site is within the South San Jose submarket, 15 miles from San Jose Mineta International Airport. The location is also 27 miles from Fremont, Calif., and 58 miles from San Francisco.

The complex will contribute to a supply-constrained industrial node that lacks competitive, new product. The property can service warehouse and advanced manufacturing tenants and is strategically positioned to provide convenient access to Silicon Valley and the greater Bay Area.

Low on development, high on rents

The Bay Area had more than 4.1 million square feet in the development pipeline as of May, according to a recent CommercialEdge industrial report. The amount represents 1.4 percent of total stock, 50 basis points below the national average of 1.9 percent.

Meanwhile, the market’s average rent clocked in at $13.29, one of the largest in the U.S. The Bay Area ranked third after Orange County ($15.49) and Los Angeles ($14.57).