After experiencing a down market in the latter half of 2022, San Jose’s condo market has rebounded and the demand is back.
Pending sale and listing activity is picked up in 2023 after hitting the deep end in 2022, according to data collected by Compass. The increased demand has led to depletion of the condo inventory in San Jose; there were 80 listings in February which was down from the almost two hundred a month a year ago.
Developers have seen the opportunity to cater to buyers who want larger units, but don’t want to pay the high prices for single family homes. The average price per sale for condos was $630,000 in San Jose, while the average price for a home was more than twice that at $1.3 million.
“Because of the rising mortgage rates, single-family homes are becoming increasingly unaffordable for homebuyers across the nation, making condos the next best thing,” a 2023 condo report said.
There have been a number of projects that have been proposed in recent years to bring more condos to San Jose. Some of them are luxury condos, others are part of mixed-use buildings, and some will require the demolition of historical sites.
188 West St James | Z&L Properties| 629,000 square feet
One of the most talked about residential developments in San Jose is the nearly constructed two-tower, 640-unit luxury condo complex at 188 W. St. James. The project was originally called Silvery Towers but was renamed after its address. The two-towers are 20 and 22 stories and encompass nearly 629,000 square feet of residential space, approximately 30,000 square feet of ground-floor retail and more than 650 parking stalls.
The project has taken longer than expected to complete due to delays in construction and increased demand for financing. The exterior of the building is complete and construction is finishing the interior of the units. The project was recently put on the market for $300 million after Zhang Li, Z&L’s executive, was arrested on bribery charges at the beginning of the year.
Stevens Creek Promenade (4300 Stevens Creek BLVD) | Miramar Capital| 233,000 square feet
Los Angeles-based Miramar Capital is starting construction on 580 condos at the northwest section of San Jose. Plans call for the demolition of three existing buildings on a 10-acre parcel at 4300 Stevens Creek Boulevard. The project will total 233,000 square feet and 173 of the condos will be below market rate. Along with the condos, the developer also wants to build a 250-key hotel with about 8,500 square feet of retail space on the ground floor. The project received approval in August of last year, and first being brought to the city’s attention in 2019.
A prior version of the project included about half the number of below market-rate condos and office space. The office component was dropped due to lack of demand.
“The reality was we couldn’t make it work. We tried for nine months to find a user,” Tom DeRegt from Miramar, said. “Most of the office users that we talked to wanted to be in a project where they could grow and have multiple phases.”
Stockton Avenue Hotel (Stockton Avenue and Julien Street) | Kade Development
Dallas based-Kade Development is proposing a first of its kind project near the Diridon Station and minutes away from Google’s proposed Downtown West Project. The developer is planning a 320 room hotel with condos on the top floors. The site of the project is located at the corner of Stockton Avenue and Julien Street, and the 0.86 acres was purchased by Kade for $4 million in 2018.
The condos will be one and two bedroom units ranging from 800 to 2,200 square feet. The building will also include a three-story underground parking garage with 129 spaces for residents and guests. Condominium residents and hotel guests will enter the building through separate lobbies but share amenities such as an indoor pool and fitness center. A rooftop deck and common area on the building’s top floor will be reserved for condo residents.
1065 South Winchester Blvd | Adam Askari and Cord Associates | 160,000 square feet
Just three miles away from the Miramar development, Dentist Adam Askari is partnering with Cord Associates in proposing to develop a six story building with 70 units at 1065 S. Winchester Blvd. The building will have 20,000 square feet of commercial space on the first and second floors, as well as a 119-key hotel on the property. Askari received approval from the city last fall.
For the project to be built it would have to tear down structures that were built between 1887 and 1900, which has angered some residents.
“The property is one of the few remaining intact representations of the fruit drying heritage of the Santa Clara Valley which will be permanently lost if the existing residence, barn, and accessory buildings are demolished,” the Historic Landmarks Commission said.
210 Baypointe Parkway | SummerHill Apartments
San Ramon-based Summerhill Apartments is planning on converting an old office building in North San Jose into 287 apartments and condos. The project is located at 210 Baypointe Parkway, between East Tasman Drive and Zanker Road. Renderings of 210 Baypointe Parkway show three- and four-story complexes highlighted in beige and ochre, with inset balconies and charcoal accents.
The development would include studios, one- and two-bedroom apartments, wrapped around a courtyard and pool, and three- and four-bedroom condos on the other side of a paseo. The condos would average more than 1,900 square feet, while apartments would average more than 800 square feet.
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