January 30, 2023
By Kate Snyder
More than a year after it first acquired the site, Amazon is now selling a 395,335 square-foot commercial office property in Milpitas, according to industry reports. The sale price has not been disclosed, but the buyer is reported to be Dermody Properties LLC.
Amazon first purchased the site in 2021 for $123 million, or approximately $311 per square foot, according to The Registry’s previous reporting. The property is located at 909 and 1000 Gibraltar Drive and 1001 and 1051 South Milpitas Boulevard on a 29-acre plot of land. It was originally sold to Amazon by Westpoint Capital Partners, a real estate investment company based out of El Segundo, Calif. Property records show that Westpoint purchased the property in 2015 for $45.25 million.
According to industry reports, Dermody is planning to convert the Milpitas property into warehouse space. Milpitas city records show the site is entitled for the development of a 491,040 square foot distribution center with office space, 346 surface parking stalls and 101 truck trailer stalls.
Located near the corner of South Milpitas Boulevard and Gibraltar Drive, the property is near both Interstate 880 and State Road 237. Just two blocks away from the Great Mall, the property is also within close proximity to more than 200 shops and restaurants. Additionally, the development is located within walking distance of the BART and VTA light rail station and just an hour drive to downtown San Francisco.
Based in Reno, Nevada, Dermody Properties is a national logistics real estate firm, specializing in industrial real estate development, investment, acquisition and management, according to the firm’s website. The company is focused on industrial real estate development and has been acquiring, developing and investing in logistics, e-commerce and industrial real estate for more than 60 years. In California, additional properties owned by the company are located in Hayward, Stockton, Fairfield, Rancho Cordova, Rohnert Park and West Sacramento.
Though Amazon has continued expanding on and opening new facilities in the Bay Area – such as the launch of its new same day facility in Richmond last year – the firm has also been decreasing its footprint along with other major corporations in Silicon Valley. Last year, Amazon subleased 506,925 square feet in Hayward to Veev, a technology company focused on modular construction for multifamily, townhome and single-family homes.