- Hines secured $120M from Affinius Capital for Edenvale Industrial Park in San Jose, and a $100M senior loan from Bank OZK (OZK).
- The 45-acre, 635 KSF development is the largest industrial project in Silicon Valley and will cater to both warehouse and advanced manufacturing tenants.
- Construction is expected to be completed by June 2025, with leasing managed by CBRE.
Hines secured $120M in financing from Affinius Capital to get the ball rolling on its Edenvale Industrial Park in San Jose. The loan follows a nearly $100M senior loan from Bank OZK, which originated in June.
While terms of the loans were not disclosed, Affinius Capital confirmed the financing, and Bank OZK, which has previously financed Hines projects, did not respond to requests for comment.
Project Overview
Currently, Edenvale is the largest industrial development in Silicon Valley. The 45-acre, 635 KSF site, located at 550-650 Piercy Road off Highway 101, is already under construction. Completion is expected by June 2025.
Despite not being pre-leased, CBRE, which was tapped to be the project’s leasing broker, is optimistic about demand.
Hines assembled the considerable swathe of land for Edenvale through multiple purchases that began back in 2021. The initial 30-acre parcel was bought from Foxconn for over $62M, followed by a 9-acre parcel for nearly $20M in June 2022, and a final 7-acre site for just over $15M in June 2023.
Supply And Demand
The development will serve both warehouse and advanced manufacturing tenants, offering a minimum of 4K amps of power, 36-foot clear heights, dock-grade loading, and market-ready offices.
The high-profile project is also addressing the incredibly limited supply of new industrial spaces in Silicon Valley, especially for Class A properties over 50 KSF. According to CBRE, San Jose is one of the lowest industrial vacancy markets in the western U.S. today.
Area tenants have also persistently complained about the shortage of power in older properties, which the new development aims to resolve.
