SAN JOSE — Apple has bought a large parcel in North San Jose along First Street, enough land for an office and research campus where the technology titan could eventually have up to 15,000 workers, public records show.
Cupertino-based Apple paid $138.2 million in cash on July 31 for the 40-acre site near North First Street and Component Drive, according to county records. The land sale represents a healthy profit for the seller, an affiliate of Connecticut-based Five Mile Capital Partners, which paid $40 million for the property in 2010.
“Apple definitely could grow that much,” said Tim Bajarin, principal analyst with Campbell-based Creative Strategies, a market research firm. “This land purchase represents a strong belief in Apple’s future growth.”
The North San Jose land, which is approved for construction of a total of 2.8 million square feet of offices rivals the size of the “spaceship” complex now under construction in Cupertino. Apple intends to move 13,000 workers to the spaceship site, which will become its world headquarters.
The newly acquired land is adjacent to a 290,000-square-foot building that Apple recently agreed to lease from Ellis Partners. Together, the land and the building form the early makings of a major San Jose campus for the iPhone maker.
“It’s mind-boggling what Apple is doing,” said Terry Bell, a senior vice president with Colliers International, a commercial realty firm. “Nothing surprises me any more with Apple’s growth. It’s tough to get your arms around the scope of Apple’s appetite to expand.”
The purchased land and the leased building could accommodate 15,000 workers if the empty lot is fully built out and Apple occupies the entire building it rented.
“You look at what Apple is doing with their current platforms, plus the rumors of an Apple TV, (and) something to do with the automotive industry to change the way vehicles operate,” Bajarin said. “Apple clearly believes it is on a strong growth path and will need a lot more workers and skilled talent in Silicon Valley.”
Last month, Apple leased 318,000 square feet in Santa Clara through two transactions that will enable the company to move 1,600 workers to a site near Great America Parkway and Highway 237.
A few years ago, Apple had leased a couple of big buildings in Santa Clara on Stevens Creek Boulevard and also has been busy renting offices in Sunnyvale as it paves the way for a huge expansion of its operations.
Apple is far from the only technology company to wolf down big servings of land or buildings in Silicon Valley.
Google has been expanding in Mountain View, Sunnyvale, Palo Alto and Redwood City. LinkedIn is laying major growth plans for Mountain View and Sunnyvale. Facebook is expanding an already big footprint in Menlo Park. And Palo Alto Networks has committed to nearly 1 million square feet in Santa Clara. Samsung is building a huge regional headquarters in North San Jose.
“We have never seen growth activity like this from so many major companies,” Bell said. “This expansion has staying power.”
Contact George Avalos at 408-859-5167. Follow him at Twitter.com/georgeavalos.
