Topgolf in Naperville, Ill.

Construction at a 36-acre mixed-use retail development, Shops@Terra, in San Jose has kicked off with anchor tenant Topgolf breaking ground in June. The project from Terra Development will include 110K SF of entertainment, restaurants and retail and a 200-room hotel.

Topgolf has signed a 13-year lease for the 72K SF location, which will be its second site in California. Its other California location is in Roseville.

"Expansion in California is a top priority for Topgolf," Topgolf Chief Development Officer Chris Callaway said in a statement.

Several other sports and entertainment retailers have been expanding throughout the Bay Area, including Pinstripes bowling in San Mateo, TITLE Boxing and Big Al’s in Milpitas.

The San Jose Topgolf is expected to be the chain’s largest and most advanced and offer customers the ability to hit microchipped balls at colorful targets, challenge friends on the WGT app, trace shots on the range using Toptracer Ranger and watch celebrities on Topgolf’s original content.

Courtesy of Topgolf

Topgolf Executive Chairman Erik Anderson and Terra Ventures Chairman Gary Gauba

The three-level building will be at 4701 North First St. and have 3K SF of private event space and 120 hitting bays. The company expects the San Jose location will serve about 450,000 customers and create 500 full- and part-time jobs. Topgolf’s second location is planned to open in fall 2019.

CBRE First Vice President Nick Whitstone will be the listing agent for the land parcels at Shops@Terra and initiated the sale of the land site. The land sale closed in January of 2017.

Terra Development and CBRE are accepting and revising proposals to complete the 36-acre master-planned development that will provide a $100M community investment.