The Trade Desk to Replace Private Club in Downtown San Jose

The Trade Desk will take up the longtime location of a private club and restaurant at an 18-story office tower in Downtown San Jose.

The Ventura-based digital advertising company has signed a lease for the 17th floor at the Fairmont Plaza at 50 West San Fernando Street, the Silicon Valley Business Journal reported. Terms of the deal with landlord Jay Paul Company, based in San Francisco, were not disclosed.

The Trade Desk will replace the Silicon Valley Capital Club, set to close at the end of its lease on Dec. 31.

The club, which has occupied the floor with a restaurant for 34 years, is apparently shutting down for economic reasons, with membership declining after a shift to remote work, members say.

“This decision was not made lightly and reflects the current circumstances that have affected our operations in the post-COVID era,” the Capital Club said in a message to members.

Broker Phil Mahoney of Newmark represented the landlord in the lease. Broker Carlo Brignardello of Cushman & Wakefield represented The Trade Desk.

With its move, The Trade Desk will double its current 17,000-square-foot footprint in the building, Mahoney said. The firm is expected to move onto its new floor in the middle of next year, after renovations.

After the Capital Club moves out with its restaurant, the building’s landlord expects to bring in a new restaurant next year.

The unidentified restaurant, a California concert bar, lounge and cafe, will open at KQED-FM’s former office, Mahoney said. The radio station announced the closure of its San Jose office in June.

The 357,000-square-foot Fairmont Plaza is roughly 80 percent leased, Mahoney said.

In addition to KQED, the Zurich-based UBS Group announced last year it would move out of its 12,600-square-foot office at 50 West San Fernando for offices at the Santana Row mall.

The Silicon Valley Capital Club is part of Texas-based Invited Clubs’ national network of private clubs, golf courses and country clubs. Another Invited Club in North Carolina also announced its pending closure.

Nicholas Adams, a Capital Club member for 14 years who had served on its board, is sad to see it go.

“The ongoing challenges, exacerbated by the shift to remote work in our region and across the valley, have severely impacted membership and regular dining revenue,” Adams, founder and CEO of NINICO Communications, told the Business Journal.

“These issues are not unique to private clubs; they mirror the struggles of small business owners across the region, especially in the hospitality and food and beverage industries.”

— Dana Bartholomew