Borelli Investment Company brokers challenging land transaction involving three parcels near Cochrane Road and Highway 101
San Jose, Calif., August 14, 2006 — Following the successful completion of 2 1/2 years of negotiations to assemble 66 acres of land in Morgan Hill, ground has been broken on Miramonte Center, a 660,000 square foot complex that will be the largest shopping center in the city’s history. The upscale “lifestyle” center located on Cochrane Road on the east side of Highway 101 will be anchored by Target and complemented by a wide variety of other retail establishments and restaurants—all connected by pedestrian features such as tree-lined walkways and courtyards.
“We wanted to bring the South Valley something unique—unlike large indoor malls and typical shopping center,” said John B. DiNapoli, vice president of JP DiNapoli Companies, Inc., co-developers of the complex with Browman Development Company. “Miramonte Center offers South Valley residents a shopping experience they won’t find anywhere else.”
Putting the Parcels Together
Before ground could be broken on Miramonte Center, years of behind-the-scenes spadework was required to put the various parcels together to create a large enough piece of land to develop. While the formal negotiations leading to the assembly of the 66-acre parcel took 2 1/2 years, a number of other attempts to do something with the land had been made over the years.
“One parcel had been owned by the prominent Morgan Hill Guglielmo winemaking family for more than 80 years,” said Ralph Borelli, CEO of Borelli Investment Company. “Brokers had unsuccessfully talked to the Guglielmo’s about office and residential developments in the past. Another parcel had multiple owners with varying interests and concerns. Finding the right terms to ensure the transaction was acceptable to all the landowners and the developers, and would also meet the city’s general plan provisions, was not easy.”
One advantage that Borelli Investment Company had was its long history in the Santa Clara Valley commercial real estate market. Started by Ralph’s father Nelo, Borelli Investment is in its 51st year of serving the Valley. The mutual trust established between Ralph and the Guglielmo family served as a cornerstone for building an agreement that everyone was satisfied with.
In addition, Borelli Investment Company has considerable experience working on complicated transactions involving negotiations with other brokers, joint venture partners, zoning and entitlement issues, Environmental Impact Reports (EIRs), and long timeframes.
“Very few land transactions in the Santa Clara Valley are simple,” Borelli commented. “Our firm has extensive experience handling complex transactions, some of which have taken a decade or more to complete. We actually enjoy the challenges, especially when they lead to a development that is as exciting as Miramonte Center.”
Miramonte Center features a contemporary, art deco design that should be extremely well received. The buildings will be very colorful, washed in bright earth tones that fit well with the surrounding hills and valley floor. Shoppers will enter off Cochrane Road by driving up a main boulevard that runs between the buildings, which will also be connected by pedestrian walkways linking courtyard-like gathering places.
In addition to the Super Target anchor store, the developers expect to sign one other “big box” anchor and a wide selection of specialty stores.
Miramonte Center is projected to have a $100 million value at build-out. The center should open in the summer of 2007, barring complications. In addition to developers JP DiNapoli Companies, Inc. and Browman Development Company, the Guglielmo Family Partnership and Morgan Hill Ventures I, LP are acting as joint venture partners. Devcon will be the general contractor for the project.
“Morgan Hill has needed its own high-profile, lifestyle center for many years,” noted Borelli. “We were pleased to be able to play an important role in helping to make this possible.”
Celebrating more than 50 years in business in the Santa Clara Valley, Borelli Investment Company is one of the oldest commercial real estate firms in Northern California. The company provides a full range of commercial real estate services—from development and construction management to land sales and consulting for sales and leasing. More information about Borelli Investment Company’s services may be obtained by calling (408) 453-4700 or visiting www.borelli.com.