Reno, NV-based Dermody Properties has agreed to purchase a 29-acre office campus from Amazon in Milpitas, CA, with approved plans to redevelop the site into a 490,000-square-foot industrial facility. The deal is expected to close in April, and the Silicon Valley Business Journal reports Dermody intends to break ground in July. Terms were not disclosed.

Amazon purchased the vacant, four-building site in October 2021 for $123 million, with plans to build a distribution center, but the on-line retail giant will sell the asset in an ongoing cost-cutting effort. Amazon still maintains two distribution centers in Milpitas.

Dermody’s George Condon told the Business Journal that the property’s proximity to Silicon Valley and Interstate 880 was important for the company, and that the new facility will be one of just a few Class A industrial properties along the I-880 corridor. Condon expects the building will be occupied by a traditional warehouse user or an advanced manufacturing tenant.