Downtown San Jose’s Greyhound Depot Sells for $39MM

Two residential towers, which were announced late last year for downtown San Jose are a step closer to reality. Cupertino-based developer KT Urban and a partner purchased the site located at 70 S. Almaden Ave. to develop two 24-story towers that will house a total of 723 units in the city’s downtown core. The price for the location was $39 million, according to public reports.

The project, located on 1.6 acres, also would include a five-story, 708-stall parking garage with three levels of below-grade parking. Additionally, plans call for about 13,500 square feet of retail space. Portland, Ore.-based C2K Architecture worked on the project and initially proposed eight potential site layout options along with varying exterior designs.

KT Urban Principal Mark Tersini said late last year that the company expects to close on the purchase of the property this year and would like to begin construction “as soon as possible” after it is approved.

The project would be just the latest downtown San Jose development started by Cupertino-based KT Urban. The company also launched the 643-unit Silvery Towers condominium project, under construction at North San Pedro and West St. James streets, along with the Axis condominium and One South Market apartment projects nearby. Further, KT Urban also filed preliminary plans with the city for a residential project two blocks from the Greyhound site at Almaden and Park Avenue, but that project is still in the planning stages, Tersini said.

“We continue to be bullish on the residential prospects of the downtown market,” Tersini said at the time. “Folks want to live in the downtown core and [in] close proximity to jobs in the North San Jose area and downtown San Jose, and it’s just a wonderful opportunity for them to live and work [there].”

The Greyhound depot at Almaden and Post Street has long been eyed as a potential development site, said Scott Knies at the time, executive director of the San Jose Downtown Association.

“It’s a perfect location,” he said. “It’s straddles the convention center and the theater district and the office corridor along Almaden Boulevard.” Also nearby are the Adobe Systems headquarters, San Pedro Square and the historic district. “It’s smack dab in the middle of everything,” he said.

Greyhound will move its San Jose terminal to the Diridon Station transit hub just west of downtown. Lanesha Gipson, a spokeswoman for Greyhound Lines, Inc., confirmed that the operations would relocate at the end of May.

Downtown San Jose is seeking to transform itself from primarily a business district into a vibrant, walkable neighborhood with high-density residential projects helping to create a live-work-play environment. There are now 8,629 residential units existing, proposed or underway in the city’s downtown, according to the downtown association. A 210-room AC Hotel by Marriott also is slated to open in the neighborhood in 2016. KT Urban’s proposal for the Greyhound site “would be the largest single housing project” downtown, Knies said.

More residential construction is welcome in the district, along with other types of development, he added. “It’s fantastic to see all of the housing that’s being proposed, but also now we need hotel, we need office—we’ve got room for all of it,” Knies said. “We have a General Plan, zoning [and] the transit infrastructure. This has been the goal for decades to have this type of density. The door is open, and we’re hoping to have more announcements of this caliber and size.”

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