[peanut gallery]

News out of San Jose about a potentially huge and transformative project next to Diridon. The Silicon Valley Business Journal reports:

On Wednesday, a major real estate developer acquired two massive parking lots at the gateway to downtown San Jose from Adobe Systems Inc. At 8.5 acres, it’s one of the largest single development plays in the central business district, and among the most capacious building sites adjacent to the popular commuter rail service (my note: they are referring to CalTrain).

Developer Trammell Crow Co. and a capital partner paid $58.5 million for the site, according to public records. The big idea: Create a large-format tech campus within an urban context — office, homes and retail, linked together by public plazas.

--------------

Trammell’s designs for the land are still being refined, but executives anticipate developing about 800,000 square feet of office in two buildings rising 10 to 12 stories, and 325 apartment units in a nine-story building. The site, which fronts West Santa Clara Street kitty corner from SAP Center, would be sprinkled with shops and restaurants and include a large public plaza along West Santa Clara Street. The historic San Jose Water Company building would be renovated and repurposed, possibly as an entertainment-focused retail space.

Don't worry about parking. Trammell would build about 2,400 spaces, most of it underground, and spots would be available to the public for events at SAP Center, Little said. (There are about 800 spaces now on the surface lot.)

From a market perspective, Trammell’s plans are hugely significant because executives say they will build at least the first office building — about 400,000 square feet — “on spec,” or without a tenant signed. The downtown area has not seen any new office construction since Riverpark II, a 300,000-square-foot tower completed in 2010. Trammell is being backed in the deal by Bentall Kennedy, the massive Seattle-based investment firm, through its Multi-Employer Property Trust, which invests on behalf of pension funds.

--------------

Trammell's Little said he expected to obtain planning permits by the first quarter of 2016, with early site work starting in the summer. The first phase of the office component would be complete by the end of 2017, with the apartments following in early 2018. A general contractor is not yet signed. The architect is San Francisco-based HKS.

Drawings were not yet ready for prime time, Little said, but he promised a signature look that would be in keeping with the site's high-profile location.

"We’ve committed ourselves to making it iconic," he said. "We think it will be a landmark in the South Bay."

It's a long article and there is a lot more information at the link.