High Cash Flow Parking Lot Property and Substantial Infill Urban Mixed-Use Redevelopment Opportunity
IRVINE, Calif., April 3, 2013 – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has been tapped by a private Chicago-based owner to market for sale a landmark surface grade parking lot property located in the core of Downtown San Jose, California which allows for a substantial high density urban mixed-use redevelopment. The property is situated on 1.25 acres in the heart of downtown business, shopping and entertainment districts, and sits directly in front of two rail stations between E. Santa Clara St. and E. San Fernando St. at 35 S. 2nd St. The property currently produces an annual net income of approximately $872,000 and is zoned within the Downtown Primary Commercial Historic District, which is ideal for a high-rise mixed-use development allowing up to a 15 FAR (Floor Area Ratio). Conservative estimates of Highest & Best Use include a 340-unit apartment project with 40,000 square feet of retail.
Jeff Conover, Christopher Tramontano, and Nicholas D’Argenzio of Faris Lee are marketing the lot on behalf of the seller who acquired the property in 2009. The property does not have an asking price and is listed on a “Best Offer” basis.
“Immediately after hitting the market we garnered a significant amount of interest from the likes of mixed-use, multifamily and student housing developers, as well national parking owner/operators seeking to capitalize on the improving San Jose market. The area is now experiencing development and investment activity at levels achieved prior to the economic downturn,” said Tramontano.
The property is in a prime Downtown location just one-quarter mile from San Jose State University, less than one-mile from Interstate 280 and within one-mile from HP Pavilion. It is also adjacent to the VTA Light Rail system with stops on both sides of the property.
“A strong housing market – indeed the strongest rental market in the nation over the last two years – combined with recent high-rise development incentives has spurred a flurry of activity in Downtown San Jose. This year, we expect to see two, 20+ story residential towers break ground, along with additional mid-rise development,” said Sam Liccardo, District 3 Councilmember, City of San Jose. “This ‘Fountain Alley’ site, as it is known, offers a unique, landmark location in the historic district of our Downtown core that can become a crown jewel mixed-use development that continues our Downtown’s rapid revitalization.”
San Jose, also known as the Capital of the Silicon Valley, is one of the top apartment rental markets in the nation with a limited supply and a growing employment base as a result of the thriving information and technology sector. Recent hiring at Apple, Cisco Systems, Google and other tech firms has boosted the region’s employment by a remarkable 6.1 percent in 2012, far surpassing statewide and national gains.
About Faris Lee Investments
Faris Lee Investments is a leading national real estate investment advisory firm, comprised of three (3) integrated business platforms; Faris Lee Investment Banking, Faris Lee Capital and Faris Lee Advisors. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee’s senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, please visit www.farislee.com.