Fortbay Looking to Bring 589 Housing Units Plus 300,000 SQFT of Office Space to San Jose

City of San Jose, Environmental Impact Report, Los Gatos, Fortbay, Commercial General, San Jose’s Stevens Creek Boulevard Urban Village, Stevens Creek Boulevard, Stevens Creek Executive Park, Colony Capital

By Michele Chandler

The City of San Jose is moving forward with the draft Environmental Impact Report that’s required before a proposed development on Stevens Creek Boulevard containing offices, retail space and 589 residential units can progress.

The city filed its notice for the project, being developed by Los Gatos, California-based Fortbay, LLC, on January 11. Fortbay had purchased the property in June of 2016 for $53 million, according to public records.

The 10-acre project site, at 4300–4360 Stevens Creek Boulevard, is located south of Stevens Creek Boulevard and north of Albany Drive and is bounded to the east and west by commercial developments. Lopina Way bisects the site between Stevens Creek Boulevard and Albany Drive.

The project area, now zoned Commercial General, is located within San Jose’s Stevens Creek Boulevard Urban Village planned growth area.

Fortbay revised its original proposal, filed early last year, to now include affordable housing, said Fortbay Principal Tom deRegt.

“We have amended our site plan to provide for an on-site affordable component. So, we’ve increased the number of residential units from 500 to 589. That’s in order to provide for a 15 percent on-site affordable component,” he said.

The City Council encouraged the addition of on-site affordable units, he said, while at the end of the year the state also passed a new law that “provided for additional guidance at the 15 percent on-site affordable” level, said deRegt.

The project proposes rezoning the site from CG—Commercial General Zoning District to a Commercial Pedestrian Planned Development [CP(PD)] Zoning District, to allow a mixed-use project, according to the city’s document.

“Land use impacts that would occur as a result of the proposed project will be analyzed,” the document said, adding that “the effect of the project on the city’s jobs/housing balance will also be analyzed.”

Five buildings are now located on the Stevens Creek Boulevard site: three two-story office buildings, one single-story office building and another single-story commercial building, as well as adjacent surface parking lots and landscaping.

Fortbay, LLC proposes tearing down all the existing buildings. A rezoning of the site from Commercial General to Planned Development is required to accommodate the mixed-use proposal.

According to city documents, the project proposes four main buildings to be constructed: Building A for office and retail, a parking garage in Building B, an eight-story Building C containing residential and retail and an eight-story residential-only Building D.

The two seven-story residential buildings would contain up to 582 residential units. In addition, Building C would have approximately 11,000 to 15,000 square feet of ground floor retail space. Building A would contain 300,000 square foot of office space, with an option to accommodate up to approximately 7,000 square feet of retail space along Stevens Creek Boulevard.

A 1,238-space parking garage is planned for Building B. Another 805 spaces would be created, above and below-grade, in Buildings C and D.

In addition, the Fortbay project may relocate Lopina Way, an existing public street, to the east property line and add two new driveways along Albany Drive to provide access to the proposed office parking garage and residential buildings.

Relocating the existing driveways along Stevens Creek Boulevard has also been proposed. Residential parking would be provided within both residential buildings, while a landscaped promenade would replace the existing Lopina Way right-of-way. The promenade would complement several tree and shrub-lined pedestrian walkways connecting the various structures.

Fortbay paid $53 million to buy the property, named Stevens Creek Executive Park, in the summer of 2016 as a joint venture with Colony Capital, LLC of Santa Monica, California.

Located not far from the tony Santana Row and Westfield Valley Fair shopping complexes, the site is also surrounded by commercial uses with residential properties nearby. That location is seen as strategic, making the proposed development accessible to employers, workers and shopping options.

Fortbay is involved in numerous single-family or multi-family projects around the Bay Area.

West Coast Commercial Real Estate News