MCR Trust to Redevelop Former Greyhound Station in San Jose

The fate of the beleaguered former Greyhound station in downtown San Jose is finally coming into focus under the ownership of Mill Creek Residential Trust.

Two longtime vacant properties in downtown San Jose, including the former bus depot, are planned to become an entertainment district, the Silicon Valley Business Journal reported. The development, spearheaded by local entrepreneur Mauricio Mejia, will be known as San Pedro South once complete.

The Greyhound station site at 60-70 South Almaden Avenue is poised to become an outdoor concert and entertainment venue known as The Greyhound. The space, which Mejia hopes to have ready for the FIFA World Cup later this month, could host events like concerts, festivals, watch parties and cultural celebrations. Another entertainment venue known as The Domes will rise across the street at the corner of Post Street and South San Pedro Street; that project will take its design from the Sphere in Las Vegas.

The properties are owned by SJ60-70 LLC, a Houston-based developer, and Mill Creek Residential Trust. SJ60-70 LLC became the new owner of the Greyhound site after the former owner filed for bankruptcy last year; lenders seized the property out of foreclosure last fall. Cleanup at the sites has already started with graffiti removal and new paint work. The dome alone is estimated to cost $3 million, while work on the Greyhound site is projected to cost more than $500,000. It isn’t yet clear if the owners will demolish the existing Greyhound building site, which would affect costs.

“The block has transformed in the last six months and I think that it’s now ready for an identity,” Mejia told the Business Journal.

San Pedro South will be located between planned multifamily development sites which will ostensibly add foot traffic and create a walkable neighborhood in the heart of San Jose. Construction on those projects has not yet started, however, as developers have a hard time financing projects as construction costs skyrocket.

“Those properties are just sitting there and they’re costing these developers,” Mejia said, noting the Greyhound site property owner is paying hundreds of thousands in property taxes annually. The goal with San Pedro South, Mejia said, is to “activate these properties” while the residential endeavors are developed or secure financing.

— Chris Malone Méndez