Google and Australian developer and general contractor Lendlease will partner on the tech company’s ambitious plans to build 15,000 homes in the Bay Area, the companies announced Wednesday.
As part of the deal, Lendlease expects to develop about 15 million square feet of residential, retail, hospitality and other uses in new ground-up neighborhoods in San Jose, Sunnyvale and Mountain View.
The $15 billion plan will take at least a decade to play out, Lendlease said.
“Today’s agreement expands on an existing and successful partnership that will help us deliver on two important objectives: our commitment to accelerate the production of residential units in the Bay Area, and our plan to build mixed-use development,” said David Radcliffe, vice president of real estate and workplace services at Google, in a statement.
Google conducted a search for a development partner via a request for qualifications and ended up selecting Lendlease, the company told the Business Times.
They started working together about a year and a half ago when Lendlease advised Google on its North Bayshore proposal in Mountain View. The companies also collaborated on a project in the Kings Cross district of London.
Lendlease has a strong track record of developing urban, mixed-use projects around the world, Google said.
As for the Bay Area, Google will contribute the land for development while Lendlease will provide the capital to build the projects. Google, the company stated, does not want to be a residential landlord.
Sydney-based Lendlease launched a development division in San Francisco in early 2016, hiring Alexa Arena, a longtime Bay Area development fixture, as its first general manager for West Coast development. She recently left Lendlease to join Google.
In 2017, Lendlease poached Tiffany Bohee to join its development team from her role as executive director of San Francisco’s Office of Community Investment & Infrastructure.
“We’re eager to contribute our world-class approach to creating unique urban communities, and we are focused on delivering outstanding places that redefine how people choose to live, work, connect and contribute to creating an active community,” said Denis Hickey, CEO Americas for Lendlease, in a statement.
Last month, Google committed to spend $1 billion to build or fund new housing in the Bay Area, including about 15,000 homes on its properties and 5,000 subsidized homes for low-income residents throughout the region.
The Alphabet Inc.-owned company, one of the Bay Area’s largest tech employers, is one of the few private companies jumping into housing development as the region’s housing costs have soared thanks to housing production paling in comparison to job growth.
At the time of the announcement, Google CEO Sundar Pichai said the company was eager to move forward on its plans.
“In the coming months, we’ll continue to work with local municipalities to support plans that allow residential developers to build quickly and economically,” he said. “Our goal is to get housing construction started immediately, and for homes to be available in the next few years.”
Lendlease and Google anticipate starting construction on new developments as early as 2021.