Gateway Tower Set to Transform Downtown San Jose's SoFA District

A significant development is on the horizon for Downtown San Jose as Gateway Tower secures over $220 million in funding to bring affordable housing to the vibrant SoFA District. The Core Companies will construct a 15-story residential building at 470 S. Market Street, drawing support from the city of San Jose, Santa Clara County, and state resources. This project marks a step forward in addressing housing needs while enhancing the area's appeal as a center for arts and culture.

The tower will feature 220 units designed for residents earning 30% to 70% of the area median income. Among these, 55 units are set aside for rapid rehousing to help combat homelessness. A tenant preference program will give SoFA-based artists the first opportunity for some residences, supporting the district's creative community. Ground floor retail space exceeding 3,000 square feet will add to the neighborhood's lively street-level activity. The first four floors will also serve as a parking garage, ensuring convenience for residents and visitors.

Construction kicks off in the first quarter of 2026, with completion slated for early 2028.

Source: SVBJ

Former Safeway Space in Downtown San Jose Finds New Owner Through Auction

A key retail spot in the heart of Downtown San Jose changes hands as the former Safeway storefront at 100 S. Second St. sells at auction for $1,950,000. This 24,090-square-foot ground-floor space, part of a 23-story condominium complex with 197 residential units, has sat vacant for years but now holds potential to reinvigorate the bustling corner. The sale signals growing interest in Downtown properties, offering a chance for fresh concepts to take root amid nearby homes and daily foot traffic.

Safeway operated in the location for a decade starting in 2009 before closing, with city officials pointing to the end of subsidized underground parking as a factor. The building also features a separately owned parking garage, adding convenience for future tenants and visitors. As Downtown San Jose works through retail and office vacancies, this transaction aligns with broader efforts to fill spaces and create lively street-level experiences for residents and shoppers.

Recent market data shows promise, with Silicon Valley retail vacancies reaching 5.2 percent in the second quarter of 2025, and the submarket including San Jose at 5.4 percent. City initiatives continue to focus on drawing businesses and events to the core, making spots like this ideal for groceries, cafes, or community hubs. With its high-visibility position, the site could soon host something that draws crowds and supports the neighborhood's growth. I'm hoping for another grocery store, but beggars can't be choosers.

Source: SVBJ

Santa Clara Street Shines Brighter with New Beautification Efforts

San Jose has launched an $800,000 initiative to refresh a key section of Santa Clara Street, bringing together the city, the San Jose Downtown Association, and other partners. This project includes 17 targeted improvements, such as repainting buildings, adding murals, and reactivating storefronts. These changes aim to create a more cohesive feel in Downtown San Jose, linking its diverse neighborhoods through thoughtful updates.

The enhancements focus on boosting foot traffic and supporting local businesses that have anchored the area for decades. Establishments like Ngan Tailoring and AK Liquor Store, both operating for over 30 years, receive special attention as a way to recognize their lasting contributions. By drawing more people to the corridor, the project also promotes public safety through increased activity and visibility on the streets.

Downtown San Jose continues its strong recovery from the pandemic, with nighttime visitor levels nearing pre-2020 figures. Initiatives like this corridor upgrade provide the momentum needed to restore and exceed that earlier energy. City leaders view it as the beginning of wider efforts to weave together the various parts of Downtown, fostering a unified urban experience.

With major events on the horizon, including Super Bowl LX and the FIFA World Cup in 2026, these beautifications position San Jose to welcome hundreds of thousands of visitors. The refreshed street will showcase the city's offerings, encouraging exploration and investment in local spots. As more projects unfold, Santa Clara Street stands as a promising example of how targeted improvements can elevate the entire community.

Source: SVBJ