SAN JOSE — A PG&E Corp. unit bought a San Jose industrial and office building in a move that is poised to bolster the utility company’s operations in the Bay Area’s largest city.
Pacific Gas and Electric Co., the utility operations subsidiary of PG&E, paid $16.6 million for a building at 1851 South Seventh St., near Spartan Stadium and the Santa Clara County Fairgrounds, documents filed on July 18 with the Santa Clara County Recorder’s Office show.
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“PG&E acquired that site to provide additional workspace for PG&E crews to support operations within the greater San Jose area,” PG&E spokesperson Stephanie Magallon said in comments emailed to this news organization.
The seller in the transaction was an alliance of local developer Layline and nationwide firm Carlyle Realty Partners, a unit of global investment titan Carlyle. Commercial real estate brokers Craig Hagglund of Lee & Associates and Joel Yungen of JLL helped to arrange the deal.
The property underwent a wide-ranging revamp ahead of the purchase by PG&E.
“The sellers did a complete renovation and upgrade and built new offices in the building,” Hagglund said. “The building had fallen into disrepair. The sellers did a lot of work to bring it up to date.”
The purchase appears to be another push by Oakland-based PG&E to become more involved in San Jose. The company is forging ahead on multiple fronts with endeavors that include power facility upgrades and new development efforts.
PG&E plans major revamps of two key electricity substations in downtown San Jose as it races to stay ahead of rising energy demands from tech, housing and commercial projects.
The investor-owned utility also has teamed up with global developer Westbank and local developers Gary Dillabough, Jeff Arrillaga, Tony Arreola, and Mark Lazzarini to develop 4,100 green homes in downtown San Jose through a network of eco-friendly housing towers and data centers that could produce energy for the residences.
These proposals are starting to navigate through the San Jose Planning Department review process. A firm timeline for development wasn’t immediately known.