Dec 22, 2006

Adobe Closes on Development Sites

Written by Brian K. Miller

SAN JOSE-Adobe Systems Inc. is acquiring 7.7 acres here from SJW Corp. for $32.5 million. The two public companies originally agreed to a 5.5-acre, $25-million deal in April that was scheduled to close in August but never did. In mid-November, a contiguous 2.2-acre property was added to the deal and earlier this week Adobe closed on all but one acre, SJW’s director of real estate Janelle McCombs tells Combined, the acreage is known as the Delmas property.

The 5.5-acre parcel, located at 374 W. Santa Clara St., is immediately adjacent to SJW’s headquarters and one-half mile from Adobe’s headquarters. Currently developed as surface parking, the property is entitled for approximately one million sf of commercial real estate with 15,000 sf to 50,000 sf of street-level retail. The additional 2.2-acre property, which sits adjacent to the 5.5-acre site, is entitled for 325 high-rise residential units above 5,000 sf to 15,000 sf of street-level retail. The one acre that Adobe has not yet acquired holds a 16,000-sf historic office building.

Adobe officials said in April that the 5.5-acre property was acquired to provide assurance the company would have the Downtown land necessary to expand operations as needed. Randy Knox III, Adobe’s director of real estate, facilities and security could not be reached Tuesday for comment on whether the additional 2.2 acres would be developed as employee housing, re-entitled for additional office development or used to some other purpose.

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