Hines Plans to Revamp Retail Buildings in Downtown San Jose

Hines wants to redevelop three blocks of mostly vacant storefronts in Downtown San Jose into a lively stretch of new shops and restaurants.

The Houston-based developer has filed plans to revamp 179,800 square feet of buildings around 150 South First Street, the San Jose Mercury News reported.

Hines bought the two-story buildings in 2021 for $59.6 million, or roughly $331.50 per square foot.

Plans call for transforming the retail district on South First Street, between East San Fernando Street and Paseo de San Antonio; on South Second Street, between San Fernando and the Paseo; and on the Paseo de San Antonio, between First and Second streets.

Details of the proposed project, dubbed Paseo Place in an area known as The Pavilion, are scant. Outdoor seating areas would be an important component of the development, Hines said.

Hines wants to “enhance pedestrian engagement” by creating outdoor dining areas, adding lights to enliven the Paseo, and blend modern and historic elements in the design, according to a planning document seen by the Mercury News.

The makeover would include “dynamic storefronts and engaging signage,” in addition to canopies, trellises, pots and street furniture.

A cost and timeline for the facelift were not disclosed.

Hines said its retail revival of new shops and restaurants could provide a strong link to San Jose State University and serve as a catalyst for downtown’s revival.

City and business leaders hope a new downtown would be a draw to people in the Bay Area for three major sporting events in 2026: the Super Bowl, a segment of the men’s NCAA basketball tournament and several matches of the FIBA World Cup.

Hines, founded in 1957 by Gerald Hines and now led by Jeffrey Hines and Laura Hines-Pierce, has $93 billion in real estate assets under management in 31 countries, according to its website.

— Dana Bartholomew