SAN JOSE — A project that’s poised to create a new neighborhood in downtown San Jose is now underway on a prime site in the city.
The creation of a new village on the Cityview block would usher in major changes. Project developer Jay Paul Co. and broker Newmark, a commercial real estate firm, believe Cityview is one of downtown San Jose’s best locations.
“There is nothing else like Cityview in downtown San Jose,” said Phil Mahoney, a Newmark executive vice chairman. “This is an entirely new, mixed-use project on 11 acres at the center of downtown.”
Real estate executives are hopeful because project developer Jay Paul Co. is bolstered by a long track record of success in the Bay Area.
“The Jay Paul Company’s plan to re-envision Cityview to provide new residential, retail and restaurant offerings is a thrilling development for the entire downtown ecosystem,” said Mike Saign, a Newmark vice chairman.
The new neighborhood is expected to include 686 residences. The mixed-use village will also include office and retail spaces for which Newmark is seeking tenants.
The proposed Cityview neighborhood site is adjacent to a 19-story office tower at 200 Park Ave. that totals 971,000 square feet. It was developed and is owned by Jay Paul Co.
Park Avenue, which runs between the village and tower, would become a grand boulevard for the city’s urban core if Cityview redevelopment plans are realized.
“The corner of Park Avenue and Almaden Boulevard is rapidly becoming the new front door to downtown San Jose,” Saign said.
Cityview and the 200 Park sites would become the hub of a lively stretch that would connect Google’s future transit village, the Adobe campus, the Center for the Performing Arts, The Tech Interactive museum, a future Westbank residential highrise, San Jose State University’s new student housing tower, and the main SJSU campus.
“This is primed to become a really cool space,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy. “It will activate more of the downtown and be part of the whole renaissance of The Paseo.”
When Cityview Plaza was originally developed decades ago, its principal development team, led by real estate veteran Lewis Wolff, envisioned the office, restaurant and retail complex as a key hub of commerce. That mission is back in play in an updated way.
Jay Paul Co., hoping to craft a speedy start to the Cityview redevelopment, is proceeding with the project in two phases.
The first will convert an office building into residences, transform an existing 15-story office building into 204,000 square feet of modern workspaces, develop new shops and restaurants totaling 35,000 square feet, and create a fitness and wellness center totaling 10,000 square feet.
Phase two is slated to consist primarily of a brand-new housing tower that would be built from the ground up.
“The more homes in downtown San Jose, the better,” said Leah Toeniskoetter, president of the San Jose Chamber of Commerce. “Additional housing increases foot traffic and makes it more of a 24/7 downtown.”
Here is how the housing would be developed at Cityview:
— An existing office building along West San Fernando Street is being converted into modern residences. The conversion would produce 326 units ranging in size from studios to three-bedroom homes. This would be known as The Village at Cityview.
— A 27-story brand-new housing highrise that is slated to be called The Tower at City View would produce 360 luxury residences, ranging from studios to three-bedroom penthouses. The new tower will feature rooftop lounges and outdoor terraces, the Cityview project’s website states.
The old parking garage has been demolished and will be replaced by new ground-floor retail and a modern garage.
Some preliminary work is underway to prepare the mid-rise office building along San Fernando for conversion into residences.
“Cityview will be the heart of downtown San Jose,” Mahoney said.
Across the street from Cityview, interest has ramped up on the part of tenants that might take space in the cantilevered 200 Park office tower.
The building could potentially accommodate 3,900 to 4,900 office workers if fully leased.
“Tenant reactions are very positive,” Mahoney said. “We are in discussions with a couple of groups for substantial portions of 200 Park, if not all of it.”