SAN JOSE, CA-GlobeSt.com has exclusively learned that a landmark surface grade parking lot property located in the core of Downtown San Jose, CA is on the block for sale, allowing for a substantial high density urban mixed-use redevelopment. Jeff Conover, Christopher Tramontano, and Nicholas D'Argenzio of Faris Lee are marketing the lot on behalf of the seller who acquired the property in 2009.
Faris has been tapped by the private Chicago-based owner to market the property, which is situated on 1.25 acres in the heart of downtown business, shopping and entertainment districts, and sits directly in front of two rail stations between E. Santa Clara St. and E. San Fernando St. at 35 S. 2nd St. The property does not have an asking price and is listed on a “Best Offer” basis.
The property currently produces an annual net income of approximately $872,000 and is zoned within the Downtown Primary Commercial Historic District, “which is ideal for a high-rise mixed-use development allowing up to a 15 FAR (Floor Area Ratio),” according to Faris Lee. Conservative estimates of highest and best use, according to the firm, include a 340-unit apartment project with 40,000 square feet of retail.
“Immediately after hitting the market we garnered a significant amount of interest from the likes of mixed-use, multifamily and student housing developers, as well national parking owner/operators seeking to capitalize on the improving San Jose market,” says Tramontano. “The area is now experiencing development and investment activity at levels achieved prior to the economic downturn.”
The property is in a prime Downtown location just one-quarter mile from San Jose State University, according to Faris Lee, and is less than one-mile from Interstate 280 and within one-mile from HP Pavilion. It is also adjacent to the VTA Light Rail system with stops on both sides of the property.
“A strong housing market—indeed the strongest rental market in the nation over the last two years—combined with recent high-rise development incentives has spurred a flurry of activity in Downtown San Jose. This year, we expect to see two, 20-plus story residential towers break ground, along with additional mid-rise development,” says Sam Liccardo, District 3 Councilmember for the City of San Jose. “This 'Fountain Alley' site, as it is known, offers a unique, landmark location in the historic district of our Downtown core that can become a crown jewel mixed-use development that continues our Downtown's rapid revitalization.”
According to a prepared release, San Jose is the Capital of the Silicon Valley and is one of the top apartment rental markets in the nation with a limited supply and a growing employment base as a result of the thriving information and technology sector. Recent hiring at Apple, Cisco Systems, Google and other tech firms has boosted the region's employment by 6.1%, according to the release, far surpassing statewide and national gains.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
