Burlington and Sprouts to open new stores in San Jose

A Burlington Coat Factory and Sprouts Farmers Market appear poised to occupy a combined 54,300 square feet of a retail building in northeast San Jose.

The New Jersey-based Burlington has leased a 30,300-square-foot storefront at 375 North Capitol Avenue, the San Jose Mercury News reported. The Phoenix-based Sprouts is eyeing 24,000 square feet in the same building.

The 99,500-square-foot building is owned by National Stores, a retail chain based in Gardena. In 2018, the firm filed for bankruptcy. It closed all its stores, including a Fallas discount store that took up much of the building at Capital Square at Capital and McKee Road, next to I-680.

The terms of Burlington’s lease with National were not disclosed. The Sprouts’ rental deal was revealed after the market chain applied for a new state liquor license for the grocery store. A marketing brochure says it signed a lease.

A Grocery Outlet store continues to operate in the building, as does Crunch Fitness. Broker John Machado holds a listing for the 100-percent leased property, set on 8 acres, for best offer.

The timing for a move into the building by Burlington and Sprouts wasn’t immediately clear. Tenant improvements didn’t appear to be underway inside the building this week, according to the Mercury News.

The deals to take up space in the building come as both retailers explore smaller-format stores.

Sprouts, which planned to open 30 new markets this year, just opened a new store on the edge of Downtown San Jose in the San Jose Market Center at 543 Coleman Avenue. Burlington, which launched its smaller format in 2021, opened a store earlier this year at 418 Westlake Center in Daly City.

David Taxin, a partner with Meacham Oppenheimer, said both chains should do well at the shopping center in northeast San Jose.