Urban Catalyst announces Fund II

Urban Catalyst, one of Downtown San Jose's premier developers, has officially started fundraising for their second round of projects. 

Fund I included multiple projects spanning office space (such as the former Camera 12 Theater), student housing, senior housing, and a hotel. Fund I was so successful it was actually oversubscribed in terms of investment. Their goal was to raise $105 million and they closed funding with $131 million on December 30th of last year.

Fund II involves two large projects, Icon and Echo. One is a residential high-rise with 300 apartments while the other consists of modern office space with large floor plates adding up to 420,000 SQFT. Both will be steps from City Hall and one of our future BART stations. They seem to be around 20 stories and likely reach the maximum height legally allowed.

If you would like to invest in Fund II, you might have to reach deep in your pockets since the minimum investment is $250,000. At least Fund II doesn't close until the end of 2024, giving you some extra time to look under the couch cushions. Construction on the projects is expected to begin in 2022, even before funding officially closes.

For more information and some renders, check out the short video below. If you have your checkbook handy, you can click here.

Market Park could bring thousands of homes and an office compound to North San Jose

A massive transit village has been proposed for the San Jose Flea Market right next to our new BART station. This is already the site of our largest project that is currently under construction. How massive you ask? The developers are looking to build 3,450 residential units and 3.4 MILLION square feet of commercial space. To put that in perspective that is roughly half of all the office space the exists in Downtown San Jose today.

The commercial component would be spread across seven buildings and three parking structures. The residential piece could utilize high-rises as tall as 200 feet, would would be very noticeable for the area. Other nearby amenities would include a plaza, pop-up retail space, an urban garden, a 1.4-acre rec area, tennis course, and a mini baseball field.

The bad news is that the Flea Market would be demolished to make way for the 61.5-acre project. There would be 150,000 SQFT of ground-floor retail and restaurants in the transit village, but it would not quite make up for losing a San Jose icon. However, given the vast increase in jobs, tax dollars, and density near transit--this project should be an easy approval by the city.

Source: SVBJ

Google unveils more of its plans for Downtown San Jose

Last week, Google released additional renders and details about their plan for Downtown San Jose. The project is one of the largest and most ambitious in the Bay Area's history. It would involve 7.3 million SQFT of office space, 4,000 new homes, half a million SQFT of retail and art space, 15 acres of parks and open space, and zero net CO2 emissions.

One of the most exciting components is that 65% of the campus will be accessible to the public. Instead of being a fortress that only Googlers can access, many of the amenities will be open for everyone to enjoy, including those 15 acres of new parks and open space.

The scale is unlike anything we have ever seen. Google is planning to build 30 new buildings! Eventually it could support up to 25,000 employees. You can get an idea below of what this might look like below. If you have the time, it's worth watching the full 40 minute video that Google put together to showcase the latest version of the project (also below).

Source: Engadget

New office building coming to North San Jose

LBA Realty has submitted plans for a new 125,000 SQFT four-story building near West Trimble Road in North San Jose. Amenities include two urban gardens, an amphitheater, a grove, and a greenroof terrace on the fourth floor.

This building is designed to compliment another approved 10-building project called NorthTown right next door which would span 1.28 million SQFT.

While the timing may seem off given the whole COVID situation, now is actually a great time to build preparing for a major rebound in 2021 or 2022. A lot of people (myself included) are missing going into the office and interacting with coworkers face-to-face.

Source: SVBJ

Mixed-use "Fountain Alley" project moves forward and includes a surprise

Urban Catalyst, which is quickly becoming my favorite Downtown developer, is moving forward with a special project in the historic Fountain Alley district. They are turning what used to be Lido Nightclub into a six story building with retail on the ground floor, five stories of office space, and a rooftop bar. Since Scott's seafood relocated, there are no options I'm aware of where you can grab food or a drink more than a floor off the ground besides the Capital Club.

The office lobby will start in the historic Knox-Goodrich building next door, which is 130 years old and will be fully incorporated into this development. This is an excellent way to preserve our history while still developing Downtown San Jose. It reminds me of how our historic post office was utilized for a cafe and exhibit space in the San Jose Museum of Art.

Another exciting surprise feature that Urban Catalyst is included in the project is a unique fountain. It would seem appropriate for a place called Fountain Alley to have an actual fountain. The goal is a place-making landmark and they have done a ton of research on cool fountains they could bring to the area. The current plan features a fountain modeled after the spectacular Apple store fountain in Milan (last image below).

While it is not the largest development project in Downtown San Jose, it's packed with character. Everything from historic preservation to unique amenities that don't exist in the area are being packing into this five story building that is just a couple hundred feet from the future BART station. This will reshape the historic district forever.

The ground breaking is currently slated for Q2 2021 and completion is expected by mid-2023.

Source: SVBJ

Japantown mixed-use development proposal

Downtown San Jose receives most of the attention when it comes to dense high-rise development these days, but there are some interesting proposals outside of the area. For example, there is a new project on the table in Japantown that would include multiple towers on the area bound by Taylor Street, Miller Street, George Street, and North First Street. It would include a 210 foot tall tower with 244 apartments, 61,000 SQFT of office space, 5,560 SQFT of retail, and 731 parking spaces.

The project would also be right in the middle of the North 1st Street Local Transit Village Plan, which will hopefully accommodate thousands of new homes and jobs in the future. Currently the area houses a surface parking lot and a one-story office building. This would be a major upgrade for the area.

If all goes well this could be approved by the City Council later this year or in Q1 of 2021. It would then take at least a couple more years to build.

Source: SVBJ

3.8 million SQFT office campus proposed in North San Jose

Bay West Development has proposed a 3.8 million SQFT office project at the former Fry's Electronics headquarters in San Jose (550 E. Brokaw Road). This would be one of the largest office projects of any kind in Silicon Valley, second only to what Google is proposing in Downtown San Jose.

The configuration would be seven large buildings and two parking structures, enough for 10,000 employees. The buildings would cap out at about eight stories or 120 feet. Unfortunately it does not appear like there is any attempt to make this a mixed use project combining residential and retail, but there is plenty of that in the area already.

Source: SVBJ

Two massive 20-story towers proposed Downtown

KT Urban has submitted plans for Woz Way Offices, another epic office project in Downtown San Jose. It consists of a whopping 1.8 million SQFT split between two towers at 280 Woz Way. One of them is a giant wall similar to Adobe's 4th tower and looks like multiple high-rises combined together.

The project architect and designer stated that the only place in Silicon Valley where a tech company can physically scale their business and have access to transit is San Jose. Hopefully the momentum can survive the current crisis as it appears that developers are finally coming around to seeing Downtown's potential.

The project would also feature an impressive 30,000 SQFT of outdoor terraces across four floors, and 6,000 SQFT of retail (a bit light for a project this size). Parking will consist of four-levels both above and below ground, enough to handle 1,215 cars.

If all goes well, the project could break ground as early as 2021.

Source: SVBJ

Platform 16 breaks ground

The next office megaproject in San Jose in now underway. Platform 16 is a 1.1 million SQFT campus within a 10 minute walk of Diridon, the SAP Center, Whole Foods, the San Jose Market Center, and the San Pedro Square Market. It's located off of Julian and Autumn Parkway.

The total build out will cost over $1 billion. Boston Properties made sure this would be attractive to our largest tech companies with large floor plates, 15-foot ceilings, and 16 outdoor terraces. There is a good chance a flagship tenant like Google will take the whole space.

The first phase will be ready in early 2023. For more information, you can find the official brochure here and a promotional video below.

Source: SVBJ

Now Arriving at Platform 16 from BXP SF Region on Vimeo.

Camera 12 redevelopment renders

Urban Catalyst revealed a few new renders of their plans for the former Camera 12 site, and it looks much better than what I expected. The shape of the theater is preserved but two additional floors are being added in the interior for additional office space (73,000 SQFT total). Rooftop patios will now be accessible from the 4th and 5th floors. Oh, and the 13,000 SQFT of ground-floor retail will extend onto the Paseo.

I still miss the movie theater, but this looks like it will greatly help activate the Paseo area. The project should be complete around the 2nd quarter of 2021. It is one of seven Urban Catalyst projects scheduled to break ground this year, all of which are in Downtown San Jose. The company plans to invest $700 million into San Jose.

Source: SVBJ

Former Camera 12 Theaters space will become office and retail

It's a bittersweet solution to a key space in the middle of Downtown San Jose, but at least it is better than the empty shell that exists today. Camera 12 was my favorite movie theater, and one of the few three-story movie theaters in the country. I was hoping this could be repurposed into a high-end theater with luxury seats, cocktails, and upscale dining similar to the Showplace ICON in Valley Fair. However, it appear Urban Catalyst has a firm plan for the 70,330 SQFT site.

The plan is to convert the space into a five-story building called "Paseo." This will be interesting to see executed given the existing configuration. They will likely have to gut the whole building. The top four floors will support 73,000 SQFT of office space while the ground floor will have 15,000 SQFT of retail.

I am excited about what the retail opportunities could be, especially given the whole street is starting to fill up. Scott's Seafood is moving to the former Social Policy space on the same block and Hapa Musubi is a few doors down (one of Downtown's most popular eateries, often completely selling out of food daily). It may no longer be a movie theater, but I'm certain this can be an anchor for urban activity Downtown.

Source: SVBJ

Inside Samsung's HQ in San Jose

The Wall Street Journal recorded a brief tour of one of San Jose's most unique buildings.The Samsung North American HQ is actually two towers connected by bridges, with tons of open spaces and hanging gardens. At any location in the HQ, you are never more than one floor away from outdoor spaces. The building may look nondescript on the outside, but the tour shows how interesting and well-designed the structure actually is.

As an added bonus, their cafeteria is open to the public so you can go check out the architecture for yourself. You can find the Wall Street Journal video tour.

Source: jawz from the San Jose Development Forum

Bill.com is moving from Palo Alto to San Jose

Bill.com was the 2nd largest Bay Area tech IPO last year and they have decided to make San Jose their new home. They are moving from Palo Alto to 132,000 SQFT at 6220 America Center Drive. This is an office complex in Alviso that also features three Marriott Hotels (including an Aloft) and HP Enterprise's Headquarters.

They are nearly tripling their space from only 48,200 SQFT at 1810 Embarcadero. That means more jobs for San Jose at a fast-growing tech company whose shares are now public. Bill.com is currently worth just shy of $3 billion and employs over 500 people.

Source: SVBJ

New office and fitness center proposed for West San Jose

Not all of our major development proposals are in Downtown or Midtown. Cypress Equities submitted a proposal for a 12-story office building and 24-hour gym in place of five low-rise buildings in West San Jose.

The 6.3-acre project at 3806 Stevens Creek Blvd includes 275,000 SQFT of office space, a 150,000 SQFT Life Times health club, 15,000 SQFT of retails, and a massive eight-story parking garage that takes up 495,000 SQFT [???]. For the urbanists out there, obviously this much parking is not ideal. Hopefully they will design the garage as flexible space that could be converted to another use in the future.

The project also includes a plaza at the intersection of Stevens Creek Boulevard and Northlake Drive.

Source: SVBJ

Google expanding in North San Jose

Google is looking into The Assembly campus in North San Jose for possible expansion. They could take somewhere between 800,000 and 900,000 SQFT according to the Business Journal. That should be enough for 4,000 employees or more.

In addition, they have already acquired eight buildings over the past couple years in North San Jose near Alviso. Those investments add up to over $400 million. If there was ever any question on whether Google was serious about investing in San Jose, I think these actions are pretty clear.

Source: SVBJ

Verizon breaks ground on a new San Jose campus

The Coleman Highline will soon be home to a 640,000 SQFT tech campus for Verizon. The development is right next to Avaya Stadium and is conveniently close to both the airport, Downtown San Jose, and a future BART stop.

They are also in good company as Roku is moving their headquarters to the Coleman Highline project as well. At 730,000 SQFT, Roku made one of the largest investments in San Jose real estate this decade. Of course, these deals will be dwarfed by Google and perhaps others over the coming years.

Construction work on the Verizon buildings began two weeks ago and should be complete by 2021.

Source: San Jose Inside

Twitter is opening an office at Santana Row

Yet another tech giant is dipping their toes into San Jose. Twitter is leasing around 30,000 SQFT in Santana Row, which is enough for 150 to 200 employees.

This is leading to rumors that they are eyeing the massive 360,000 SQFT Santana West project across the street. That would make quite a nice second headquarters, similar to Splunk--one of their Santana Row neighbors. Eventually Santana West will have a million SQFT of office space which is plenty of room for a tech company to stretch out into.

Source: SVBJ

KT Urban proposes a 1.15 million SQFT tower

A prolific developer is looking to transform a corner at Almaden and Woz way into either an office or residential project, or perhaps even a combination of both. They have a preliminary site development plan with three options for the 2.6-acre parcel:

1.) All-office: 20-story, 1.15 million SQFT office tower with 977,000 SQFT of net office space.
2.) Mixed-use: 27-story office ower with 500,000 SQFT of net office space and a 27-story residential tower with 300 residential units and 300 hotel rooms.
3.) All-residential: A 27-story residential tower with 750 units.

I'm most excited by option 2, but honestly any of these three would be an asset to the Downtown San Jose area. KT Urban is working to secure city approval by the fourth quarter of 2020 and there is no publicized target date for construction.

Source: SVBJ

New six-story project with expansive rooftop bar Downtown

Urban Catalyst is transforming the Lido nightclub building at 30 S. 1st, an adjoining parking lot, and a nearby building into a major mixed-use project. The six-story building will have 73,000 SQFT of office space, 14,000 SQFT of retail and restaurant space on the ground floor, and a whopping 5,000 SQFT rooftop bar. It will even have a glass elevator to take visitor from Fountain Alley directly to the lounge on the roof. This will be the largest rooftop bar in San Jose when completed and it will hopefully help take the vibe of this street up a notch.

Urban Catalyst also plans to build a water fountain on the corner of South First Street and Fountain Alley.

If everything goes according to plan, they will break ground on this building in 2021 after the current tenant's lease expires and complete the project in 2022.

Source: SVBJ

Google's vision for Diridon takes shape

We are getting closer and closer to the most significant mixed use project in Downtown San Jose history. Last month, the Station Area Advisory Group (SAAG) provided the first public viewing for the initial Diridon Station plan. The key principles for the project are locating jobs and housing near transit, connecting people to nature, creating partnerships, and making sure the San Jose brand is represented.

The numbers being thrown around for this project are surreal. 5.5 million SQFT of new office space followed by another million SQFT on the San Jose Water building site, 3,000-5,000 new housing units, 500,000 SQFT of retail/arts/hotel space, and 15 acres of green spaces.

It will take many years if not decades for this to all come together, but the direction is both promising and exciting.

Source: SJ Economy Blog