Big downtown San Jose housing tower edges closer to construction start
A potentially eye-catching housing highrise proposed for downtown San Jose has edged closer to a construction start.
If the residential tower is built, the new project could become a green shoot of development activity in downtown San Jose, which is battling to escape the economic debris that coronavirus-linked business shutdowns have unleashed.
Dubbed Orchard Residential, the highrise would be developed on the site of the former Bo Town restaurant, which was a dining mainstay at 409 South Second Street in downtown San Jose until it closed in 2019.
The 30-story tower is slated to produce 540 residential units, according to documents filed with the Sant Clara County Recorder’s Office.
A real estate alliance of Westbank, a mega-developer with a global reach; and Urban Community, a local developer headed up Gary Dillabough and Jeff Arrillaga, is building the new tower.
The fresh sign that the highrise is nearing its start of development is a “construction logistics agreement” involving the Westbank-Urban Community alliance and real estate executive Richard Berg, who owns several downtown San Jose properties that are adjacent to the site of the proposed tower.
The tower is slated to begin construction as soon as November, according to several sources familiar with the project who were not named because they are not authorized to speak officially regarding the development. Some sources have direct knowledge of the plans. This news organization also reached out to Westbank and Dillabough for a comment.
Papers outlining the construction agreement were filed with Santa Clara County officials.
The agreements involve construction activities that Westbank will conduct as it builds the tower. Among the activities: construction crane operations, scaffolding, shoring, installation of tie-backs (wires or rods that reinforce retaining walls), building maintenance, rights of entry and property easements, the county documents show.
Westbank also said it would conduct construction in a fashion so as to minimize an impact on the adjacent properties owned by Richard Berg.
The Berg properties involved in the construction agreement are located at 400, 410, 420, 434, 450 and 452 South First Street, according to the real estate records.
“It would be exciting to see this get started,” Berg said in an interview with this news organization. “It will be a real shot in the arm for downtown San Jose to get this built.”
Westbank has proposed the development of several projects in downtown San Jose.
A revamp of the historic Bank of Italy Tower is part of Westbank’s plans for downtown San Jose. The company is putting the finishing touches on plans to convert the office tower at 12 South First Street to a housing highrise.
None of the brand-new projects proposed by Westbank have reached the point of vertical construction or even the excavation for a foundation.
As a result, the development of the Orchard Residential tower at the corner of South Second Street and East San Salvador Street would mark a major milestone for both Westbank and downtown San Jose.
The Orchard Residential tower is expected to create increased vibrancy in downtown San Jose’s SoFA (South First Area) district by adding several hundred residents to the neighborhood.
“It’s a key infill site for SoFA and will be an important project for the downtown,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.
The next step for Westbank is to secure construction financing for the Orchard Residential project. The development giant is close to completing the process to secure the construction funding, sources said.
“Getting this highrise underway and starting construction is very important in terms of showing the strength of downtown San Jose,” Staedler said.