The Sobrato Organization Completes 74,000 SF Office Reuse Project at Historic Palo Alto Cannery Site

PALO ALTO, Calif. — The Sobrato Organization has completed The Cannery, a 74,000-square-foot adaptive reuse office project at 340 Portage Avenue in Palo Alto that converts the former Bayside Cannery Company site into a Class A office campus targeting LEED Platinum certification, the firm announced May 12.

Once known as the Bayside Cannery Company — established nearly a century ago by Chinese immigrant and entrepreneur Thomas Foon Chew — the site now houses an all-electric office building designed for Net Zero Energy and Net Zero Carbon operations. The Sobrato Organization described the project as the most sustainable building in its history and a proof of concept for future retrofits across the industry.

A Historic Site Reimagined for Office Use

The project centers on a site with deep roots in the region's agricultural and immigrant history. In 1918, Chew purchased the original four-acre parcel, and within two years the Bayside Canning Company had grown to become the third-largest cannery of fruits and vegetables in the country. Chew earned the moniker "Asparagus King" for his company's pioneering work in the commercial canning of green asparagus. He also maintained a culturally diverse workforce, provided housing and food for employees during off-seasons, and organized transportation for workers who lived outside of Palo Alto.

In recognition of Chew's contributions to the history, culture, and innovation of Palo Alto, the City Council adopted a resolution renaming Portage Avenue to Thomas Foon Chew in conjunction with approval of the Cannery development plan.

Interpretive displays on the interior and exterior of the building further preserve and celebrate this chapter of local history. The Sobrato Organization also worked closely with Thomas Foon Chew's descendants to commission a large-scale mosaic mural on the retail frontage of the building — a thousands-of-tile artwork featuring tiles sourced from Mexico, paying tribute to the cannery's history and the inclusive spirit of its founder.

"I wanted to honor everyone who built this place — Thomas Foon Chew, the factory workers, the families — and show how their spirit of invention runs straight through to the Silicon Valley we know today," said Kyungmi Shin, the mural's creator.

Sustainability Features

The Cannery's all-electric design and Net Zero Energy and Net Zero Carbon operations are central to the project's positioning. Robert Tersini, Senior Vice President of Real Estate and Development at The Sobrato Organization, described the project as a benchmark for future development activity.

"The Cannery is a truly unique integration of history, community, and performance. Delivering the most sustainable building in our history," Tersini said. "This project has become a proof of concept — and a north star for what sustainability can look like moving forward."

Tim Steele, also a Senior Vice President of Real Estate and Development at The Sobrato Organization, added that the project demonstrates a replicable model. "By demonstrating that historically significant buildings can be transitioned to fully electric, renewable-powered operations, it serves as an example that can help accelerate retrofits across the industry," Steele said.

Community Benefits and Future Development Components

Beyond the office component, The Sobrato Organization has committed to a broader set of community benefits tied to the site. The firm plans to bring 74 for-sale townhomes to the property through a future homebuilder partnership and will contribute an additional 3.25 acres of land to the city for future affordable housing and a park. Through this work, the firm said it helped expand the site's affordable housing capacity from 15 units to more than 100 and contributed $5 million to support a request-for-proposals process for future housing and park development.

Palo Alto Mayor Vicki Veenker highlighted the city's partnership with the developer in securing those community benefits. "On behalf of the City of Palo Alto, we deeply appreciate Sobrato's longstanding commitment to Palo Alto and pioneering leadership advancing economic development and vitality, historic preservation of the Cannery, and sustainability," Veenker said. "The City partnered with Sobrato to secure 3.25 acres of land for a new park, re-naturalized creek, future housing and affordable housing."

Adaptive Reuse in Context

The Cannery reflects a broader trend in office real estate toward repositioning and reuse rather than new ground-up supply. The project combines historic preservation, carbon reduction, and community benefits as part of its development approach.

The Sobrato Organization is a multi-generational, family-owned firm based in Silicon Valley that has been active in commercial real estate development, multifamily construction, and philanthropy in the San Francisco Bay Area for nearly 70 years. The firm comprises three enterprise units: Sobrato Real Estate, Sobrato Philanthropies, and Sobrato Capital.

The completion ceremony for The Cannery brought together Palo Alto city leadership, members of the Thomas Foon Chew extended family, mural artist Kyungmi Shin, neighborhood community association representatives, and community partners. The event included a dedication of the Thomas Foon Chew mosaic mural, guided site tours, and remarks from firm leadership and city officials.