Parcels next to mall in San Jose hit the market for $25M on combo deal

Two separate properties that are across from a major San Jose mall and listed as potential sites for high-rise offices, a medical tower or hotel have hit the market for $25 million.

The parcels are located at 2812 and 2850 Stevens Creek Blvd. across from the Westfield Valley Fair mall and down the street from Santana Row, the San Jose Mercury News reported. The latter property, now occupied by a gas station, is approved for an 11-story hotel.

Adeel Mahmood, principal executive with Los Altos-based Villa Developers & Investment, last fall rescued the gas station property from foreclosure. Mahmood’s group still owns the site. The adjacent site is owned by an affiliate led by the Sal Cala family, a real estate investment group.

David Taxin, a partner with real estate brokerage Meacham/Oppenheimer, drummed up the idea of selling both properties in a package deal. Together, the sites add up to 1.3 acres – perfect for a high-density development, he said. The combined site would be offered for sale at $25 million.

“We went to the neighbor and we are marketing the two parcels as a single development site,” Taxin said. “The parcels together would give you a property where you could go at least 10 stories with a building.”

If sold separately, the gas station property at 2850 Stevens Creek would be offered for $12.8 million. In recent years, Mahmood tried to sell the hotel-approved site for $20 million before the pandemic devastated the hospitality sector.

San Jose city officials are seeking higher densities along Stevens Creek Boulevard between Interstate 880 and Winchester Boulevard. The properties are just west of the freeway.

A Texas developer is moving forward with plans to build a 295,000-square-foot office tower and an adjacent fitness center on Stevens Creek Boulevard. It’s expected to break ground this summer.

[Mercury] – Dana Bartholomew

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