A rare, 10.6-acre vacant lot in east San Jose located at 641 North Capitol Avenue at the southwest intersection of Gimelli Way and North Capitol Avenue has traded hands recently for $30.2 million, according to public documents. The buyer was Irvine-based City Ventures, which also filed a proposal with the city of San Jose late last year to redevelop the land. The seller was a private office associated with the Krass and Merlino families.
The property sits among other residential developments and is adjacent to the Capitol Square Mall. The land is also next to US Highway 680 and today houses an existing single‐family residence and former agricultural structures. The development proposal is looking to demolish the existing buildings and construct 188 residential units, up to 108,000 square feet of commercial/office uses, and approximately 1.07‐acre publicly accessible park, according to public documents filed with the city. The project would also include a two‐story medical office building containing up to 28,000 square feet of space in the southeast portion of the project site, an approximately 70,000 square foot self‐storage warehouse facility with up to 5,000 square feet of dividable commercial space on the ground floor and up to 5,000 square feet of office space on the second floor.
There is a second scenario also proposed for the redevelopment of the land, which emphasizes more residential development and reduced commercial uses. This second scenario would replace the proposed 70,000 square foot public storage facility and develop 178 townhouses and 315 apartment units for a total of 493 units on the 10.6‐acre project site. This scenario would still include the construction of the two‐story medical office building containing up to 28,000 square feet of space in the southeast portion of the project site, the two‐story commercial building containing up to 5,000 square feet of dividable commercial space on the ground floor, up to 6,000 square feet of office space on the second floor, and the approximately 1.07‐acre publicly‐accessible park located along Gimelli Way.
The site represents a rare development opportunity in the region. It is surrounded by other housing options, and it is a block away from William Sheppard Middle School and just a few blocks from the Warm Springs neighborhood in San Jose.
City Ventures is a home builder that has primarily focused its developments in Northern and Southern California. It prides itself on building modern and energy-efficient homes that help its residents live more sustainable lives and spend less on utilities, according to its web site.
The company has a corporate office in San Francisco located at 444 Spear Street, and it has developments in the region from Morgan Hill to Santa Cruz to Oakland and Alameda. It has three new developments planned in the Bay Area, according to the company’s website, which are planned in Santa Rosa, Morgan Hill and Union City.