SAN JOSE — A big site in north San Jose that includes a Lowe’s hardware store is now fully controlled by a developer described as “innovative” because of a penchant for unusual redevelopment projects.
In separate property purchases this year, with the most recent occurring a few days ago, an affiliate of Orton Development has bought about 13.3 acres at a choice site near the interchange of Interstate 880 and Brokaw Road, documents filed with the Santa Clara County Recorder’s Office show.
Emeryville-based Orton Development now owns all the land beneath a Lowe’s Hardware store, as well as adjacent retail buildings on a property at and near 775 Ridder Park Drive, according to the county records.
All told, Orton Development paid $55.6 million for the properties, including transactions in May and November of this year, the county documents show.
In the May 2021 purchase, Orton affiliate 775 Ridder Park Drive paid $41.8 million for the land beneath the Lowe’s hardware site.
On Nov. 16, Orton affiliate Lake Natoma Associates paid $13.8 million for some smaller parcels, including a retail building whose tenants include DaVita Silicon Valley Dialysis.
The seller in the transaction of a few days ago was Peter Pau, a high-profile Bay Area developer. David Taxin, a partner with Meacham/Oppenheimer, a commercial real estate firm, arranged the recent transaction.
“Orton is very innovative and they are forward-thinking with their projects,” Taxin said. “Orton has developed some very interesting projects.”
Among the high-profile redevelopment sites in the Bay Area that Orton owns:
— Ford Point in Richmond. A former Ford Motor vehicle assembly factory, Ford Point is nearly fully leased to tenants such as SunPower, Columbia Sportswear, and Ekso Bionics and is the site of a restaurant with scenic views of the Bay.
— Oakland Civic in Oakland. The historic site of the former Oakland Auditorium and Calvin Simmons Theatre is being redeveloped. The property will be converted into commercial space as well as provide office, practice, and performance space for local artists, makers, and performers.
— Flint Ink in Berkeley. A former ink factory, the property has been revamped and now has tenants that include two wineries, a solar power company and a printing company.
— Contra Costa Industrial Park in Pittsburg. A former U.S. Steel foundry, the complex is now a multi-use industrial center that both BART and SF Muni use to make and repair rail cars.
“Orton has made a savvy real estate purchase with the Ridder Park site,” said Bob Staedler, principal executive with Silicon Valley Synergy a land-use consultancy. “There has been continued interest over the years for strategically located sites in North San Jose.”
The site might not be redeveloped right away, since the primary tenant at the site, Lowe’s, had previously obtained a ground lease that allows the retailer to be in the big retail building for a number of years, according to Taxin.
Over the next several years, however, the property could become a prime redevelopment site, Taxin said.
“Theoretically, it could come around for redevelopment in the next several years, depending on what happens with the Lowe’s lease,” Taxin said.