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.”

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