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County Opts to Buy, Rather Than Lease, New San Jose Clinic for $340M
Santa Clara County will pay $340 million to acquire, rather than lease, the future Valley Health Center San José at 1410 S. Bascom Ave. Buying the new clinic will save an estimated $112 million over a 30-year period.
Under a long-term lease the Santa Clara County Board of Supervisors approved in 2022, the county would have paid an average of $25.5 million to lease the 230,000-square-foot facility from an LLC known as HSRE-PMB San Jose. The agreement followed a facility needs assessment that warned of major costs to renovate existing but outdated clinical spaces around the county’s flagship public hospital, Santa Clara Valley Medical Center, according to San Jose Spotlight.
The decision to buy “ensures sustainability and long-term community health,” said board president Otto Lee. “Given the financial challenges ahead, acting now to reduce monthly costs and secure a critical healthcare asset is both prudent and forward-thinking. This is a true win-win for our county.”
- ◦Sale/Acquisition
- ◦Development
