Jay Paul Company has a new plan for its CityView development in downtown San Jose, swapping out some office buildings for an office-to-resi conversion, a brand new residential tower and retail.
“Demand for older Class B and C office space at this site has declined, while the need for housing in San Jose continues to grow,” company President Jay Paul told The Real Deal. “Right now, multifamily development is delivering stronger returns than aging office properties, making residential conversion an attractive proposition.”
The new design redevelops San Jose’s CityView Plaza, which the Silicon Valley developer bought the bulk of for $283.5 million in 2018, adding two adjacent properties a year later for $100 million. That same year, the firm also bought the 19-story 50 West San Fernando Street for $238 million, bringing its holdings to about $680 million in downtown San Jose.
Originally plans called for three 19-story, interconnected office towers containing 3.4 million square feet of offices, shops and restaurants. The company asked the city for a five-year pause on that plan last year, citing “current financial markets and a reduced demand for office leasing.”
Now downtown San Jose’s biggest office owner is moving forward, but with a new plan for a mixed-use community with a large residential component, plus office, retail and restaurants, according to a news release from the company.
“We’re long-term owners of the property, and unlike short-term investors or fee-driven developers, our low basis in the property allows us to take a strategic, sustainable approach ensuring solid returns,” Paul said.
The Village at CityView is a 320-unit conversion of an existing four-building office campus, as well as the current 2.35-acre plaza, designed by Solomon Cordwell Buenz. Apartment units will range from studios to three-bedrooms, with shared green spaces, a 10,000-square-foot fitness and wellness center, and a rooftop pool, “all of which enhance downtown San Jose’s appeal as a vibrant place to call home,” the release indicates.
Phase two of the project details a brand-new 27-story luxury apartment tower, called The Tower at CityView, at 121 South Market Street. Also designed by SCB, it will have 360 units, from studios to three-bedroom penthouses, with rooftop lounges and outdoor terraces showcasing city views, along with onsite, underground parking.
For the retail component, The Shops at CityView will bring 35,000 square feet of retail and restaurants designed by architect DES to a “downtown environment that currently lacks similar amenities,” the release says. Set to be located at the intersection of Park Avenue and Almaden Boulevard, the retail hub will “complement” the existing 15,000 square feet of street level retail in Jay Paul Company’s adjacent 19-story 200 Park.
There is still a substantial office component in CityView proper with the extensive renovation of 150 Almaden, a 15-story, 204,000-square-foot Class A office building that will be “modernized to meet the evolving needs of today’s high-tech workforce,” according to the release. The renovation will include an upgrade to the building systems, a new lobby and tenant amenities like a conference center and fitness center. Like 200 Park, it will have three parking spots for every 1,000 square feet, which the company said would allow it to “compete with the convenience of suburban projects while offering a dynamic and exciting location in the heart of downtown.”
“People want to live, work and play in the safest big city in the Bay,” San Jose Mayor Matt Mahan said in a statement, calling the project “groundbreaking” for its ability to help the city “reimagine what the capital of Silicon Valley looks and feels like in the age of AI.”
Paul said that the mayor had made it clear that housing is integral to downtown’s future, with an eye towards a “dynamic, experience-driven economy,” and that Mahan and the city council had “stepped up with new initiatives to support downtown investors, enhance safety, and streamline the development process.” He also said that creating vibrancy downtown would benefit the company’s existing office properties, like 200 Park across the street.
“Downtown San Jose has made a strong comeback,” he said, citing improved foot traffic and nightlife. “Adding more housing will only strengthen the momentum, supporting a 24/7 economy and bringing even more people to the area.”
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