SAN JOSE — An affordable student housing tower that was converted from a hotel high-rise is now officially owned by San Jose State University with the completion of an $89.1 million deal for the prominent property.
Spartan Village on the Paseo, located at 184 South Market St. in downtown San Jose, was sold by an affiliate of Throckmorton Partners. Throckmorton bought the 264-room hotel tower for $73.1 million in 2023. The Spartan Village property was the southern tower of the Signia by Hilton San Jose hotel, which continues to operate next door as a 541-room lodging hub.
After its purchase, Throckmorton redeveloped the hotel and transformed it into a residential hub for SJSU students. The student housing opened as Spartan Village on the Paseo in August 2024.
A grant deed that transferred the student housing tower to the California State University system was recorded on Dec. 1 in Santa Clara, formally completing the property purchase.
“San Jose State’s purchase of the Spartan Village on the Paseo from Throckmorton Partners is the culmination of a landmark collaboration that has elevated our campus,” SJSU President Cynthia Teniente-Matson said.
SJSU officials touted a cooperative effort between the university and Throckmorton to revamp and convert the tower into student housing.
“The Throckmorton team were excellent partners to SJSU in the creation of this much-needed affordable housing for our students,” Teniente-Matson said. “We have much gratitude to Throckmorton for their partnership.”
Mill Valley-based Throckmorton Partners leased the tower to San Jose State University and agreed at that time to give SJSU the option to buy and own the student housing hub.
The university accomplished the property purchase with $89.1 million in funding through the state Higher Education Student Housing Grant Program.
The 13-story student housing tower can accommodate 679 student beds with a maximum capacity of 811 student beds, according to materials prepared for a May 2025 meeting of the California State University system’s finance committee.
“The finalized transaction is good business for San Jose State,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.
The conversion of an existing hotel enabled SJSU to bring more student housing into San Jose at a swifter pace than a ground-up development of a similar hypothetical residential tower in the same area, in Staedler’s view.
The total project budget for the university’s purchase of the housing tower was about $168.1 million, a report prepared for the meeting states. This includes the debt needed to pay off bonds required to help finance the project, the report states.
One eye-catching feature of the student housing complex is a sky bridge lounge that has become a gathering area for residents who can socialize and study while they take in views of downtown San Jose and the Paseo beneath the bridge.
The bridge connects directly to the second floor, which has become a crucial part of the revamp and renovation of the property.
The second floor has numerous dining options for students, according to SJSU officials.
“By transforming a former hotel into vibrant, secure, and affordable housing, we have invested in our community and ensured that Spartans have access to the resources and environment they need to thrive,” Teniente-Matson said.
The Spartan Village student housing tower also represents a key strengthening of the bonds between San Jose State and the downtown, in Staedler’s view.
“SJSU is the heart of the downtown, and the city needs to fully support the university,” Staedler said.