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Questions Rise as Ash Settles at Santana Row

SAN JOSE-The cause of the fire, insurance coverage, project timelines, everything remains in flux as triage begins at the $500-million development following a huge blaze that destroyed half the development's planned housing.

By Michelle Savage | Updated on August 23, 2002

SAN JOSE-After involuntarily hosting the largest fire in San Jose history, Federal Realty Investment Trust says it’s confident the $500 million Santana Row development will open in time for the holiday season, if not four weeks from now, as planned.

The fire burned the most expansive building in the nine-building “urban village,” destroying 246 housing units, nearly half the project’s planned residential units, and possibly the 36 retail stores below that, which amount to 17% of the project’s 538,000-sf of retail space. Rebuilding it will take years, says company president Steve Guttman.

Federal Realty holds two insurance policies for the upscale 42-acre residential and retail complex, valued at approximately $300 million. Sources say the policies should cover the damage, an estimate for which has not been released. San Jose Mayor Ron Gonzales concurs, saying the city is prepared to help, but “I don’t think that’s going to be necessary. I think our assistance is going to be limited to things like the permitting process.”

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