SAN JOSE — Costco Wholesale bought a building in San Jose for $14 million in a deal that could enable the retailer to build a new fuel station near its existing warehouse store, according to documents filed on Wednesday with the Santa Clara County Recorder’s Office.
The 84,200-square-foot office and research building at 1704 Automation Parkway is across the street from a Costco store at 1709 Automation Parkway. In January 2024, the building’s assessed value was slightly below $24 million.
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The seller of the property was a business entity operating as Nautilus Global Commercial Real Estate, county files show. Costco bought it through an all-cash deal, according to real estate records.
Colliers brokers John Kolyar, Kyle Portal and Brett Taylor arranged the deal on behalf of the property’s seller.
In late May, Costco filed an application with San Jose planners in which it proposed the development of a new fueling station on the 5.6-acre site of the office and research building.
“The project will relocate the existing Costco Gasoline facility located at the address above to the developed parcel across Automation Parkway currently occupied by a commercial/office building,” Barghausen Consulting Engineers stated in the filing.
The project will include a canopy totaling 23,000 square feet on a site that will accommodate 25 new fuel dispensers and four underground storage tanks, each capable of holding 40,000 gallons. The new gasoline station also will include a 1,500-gallon fuel additive tank, according to the development proposal.
“The existing fuel facility will be razed and removed from the site, and the existing 4,055-square-foot commercial building will be demolished,” the Costco representative stated in the filing. “The existing underground storage tanks and piping will be decommissioned and removed by state-certified contractors.”
Once the former fuel facility is removed, Costco will pave over that site and add 318 parking spaces for a total of 1,052 parking spots, project files state.
“The intent of the relocation is to install a new state-of-the-art facility to provide a more efficient fuel purchasing experience for Costco members,” Costco’s representative stated in planning documents.
Costco has been in expansion mode in the city in recent years, including the addition of a business center store in east San Jose and a warehouse store in south San Jose.