SAN JOSE — Kaiser has bought a small bit of land next to the site where the healthcare titan has begun construction of a project that will bring an ultra-modern hospital to south San Jose.
Great Oaks Water Co. sold the parcel, which is a small fraction of an acre in size, for $3 million, according to documents filed on Feb. 3 with the Santa Clara County Recorder’s Office.
Kaiser Foundation Hospitals paid $3 million for the property in south San Jose, the county records show. The parcel is next to International Circle.
Great Oaks sold the parcel for a price that was well above the $505,000 estimated value for the property as of January 2024, as calculated by the Santa Clara County Recorder’s Office.
The small property that Kaiser has just bought totals about 1,450 square feet. Kaiser bought the land parcel through an all-cash deal, the county documents show.
Oakland-based Kaiser has launched the construction of a big new hospital to replace Kaiser’s San Jose Medical Center.
Construction of a new state-of-the-art Kaiser Permanente hospital in San Jose began in November 2024 with a groundbreaking for an ultra-modern complex to replace its aging medical center just down the street.
Kaiser is building its new medical center at the corner of Hospital Parkway and International Circle. The current hospital is more than 50 years old.
“The new hospital is expected to open in the fall of 2029 and will be about 650,000 square feet with up to 300 private patient rooms when fully operational,” according to information that Kaiser Permanente had previously sent to this news organization.
By 2030, the existing hospital was due to be out of compliance with the latest seismic safety standards. The current medical center was built in 1974.
After the new medical center goes into service near Cottle Road and Santa Teresa Boulevard in south San Jose, Kaiser intends to demolish the existing hospital, which totals 250,000 square feet.
The new hospital building will provide the size and types of spaces needed to accommodate high-quality patient services. Patient rooms will no longer need to be shared, Kaiser said.
The anticipated 300 beds in the new hospital would be 21% more than the 247-bed total in the existing hospital, according to documents on file with San Jose city planners.
Hospital buildings are increasingly expected to provide advanced features as codes and regulations evolve.
The first phase of construction is a new 1,040-space parking structure, according to Kaiser.
Kaiser intends to demolish the existing hospital once the new medical center is complete and operating with patients.
Starting the project with the new parking garage ensures that the existing hospital and medical center can operate without disruption while the new hospital is constructed atop a surface parking lot site, Kaiser says.