Throckmorton Sells Student Housing to San Jose State

San Jose State University is now the owner of an affordable student housing tower near its campus in downtown San Jose.

Spartan Village on The Paseo, which was converted from a hotel to income-restricted student residences earlier this year, sold to San Jose State University for $165 million, the Mercury News reported. The school completed the purchase with funding entirely provided by the state’s Higher Education Student Housing Grant Program. The total budget for the purchase was approximately $168.1 million, including the debt needed to pay off bonds required to help finance the project.

An affiliate of Throckmorton Partners sold the property, at 184 South Market Street. Throckmorton bought the building, a 264-room tower part of the Signia by Hilton San Jose hotel, in 2023 for $73.1 million. The Signia hotel remains open across the Paseo in a large building with 541 rooms. Throckmorton undertook the conversion of one of Signia’s towers into student housing for SJSU attendees, opening the property as Spartan Village on The Paseo in August 2024.

Mill Valley-based Throckmorton Partners previously leased the tower to San Jose State University and agreed to give SJSU the option to buy and own the future student housing building. The handover of Spartan Village on The Paseo marks “the culmination of a landmark collaboration” between Throckmorton and the university, SJSU President Cynthia Teniente-Matson said.

Spartan Village on The Paseo rises 13 stories in downtown San Jose above the Paseo de San Antonio pedestrian mall. The tower can accommodate at least 679 student beds with a maximum capacity of 811 beds. A sky bridge lounge remains a popular gathering spot for students, connecting directly to the second floor, which has several dining options for students.

It’s the latest vote of confidence in San Jose’s central business district as a hub for SJSU students. Last year, Amcal Housing and Swenson secured a $150 million refinancing deal for their 19-story The Grad San Jose student housing complex. That development, a 260-unit high-rise at 88 East San Carlos Street, is just a few blocks away from Spartan Village on The Paseo. — Chris Malone Méndez

CORRECTION: A previous version of this story contained an incorrect price. San Jose State University purchased the student residences for $165 million, according to a Throckmorton spokesperson.