By Meghan Hall

More than six months after the property has hit the market, Pacific Bell, a unit of AT&T, has sold off two parcels located at 95 S. Almaden Avenue in downtown San Jose. The property was purchased by an affiliate of J.P. DiNapoli Companies for about $35.65 million in a deal that closed on December 19th, according to The Mercury News, who references public property documents. The one-acre property itself is currently an undeveloped surface parking lot, but is seen by many in the industry as a ripe redevelopment opportunity.

The property is roughly a block from 200 Park Avenue, a site that J.P. DiNapoli purchased in the summer of 2018 for $11.5 million. Shortly after, the firm proposed the construction of up to 875,000 square feet of Class A office space. The 200 Park Avenue project, now owned by Jay Paul Co., broke ground in November. The development will be the first Class A tower brought to market in downtown San Jose in more than 10 years and will be the highest building in San Jose’s core.

“We’re going to do everything we can to ensure that this is successful because this is exactly what we need in our city, this is precisely what we need in our Valley,” San Jose Mayor Sam Liccardo said in a statement at the 200 Park project groundbreaking. “This is a Silicon Valley that is crying out for a vibrant urban center and we are creating it now.”

Other nearby development includes Museum Place, which will total 928,000 square feet of office and retail uses, which will be designed to attract a tech tenant. The project, led by Gary Dillabough, was unanimously approved in early December by the San Jose City Council. 

Additional developments that were recently approved include Avalon Bay West at 700 Saratoga Ave., Steven’s Creek Promenade at 4300 Steven’s Creek Boulevard, and Bascom Gateway. Together, the three projects total nearly 1,400 residential units, 27,800 square feet of commercial space and 513,500 square feet of office space.

San Jose is well known as America’s tenth largest city and one of the largest in the Bay Area, and thus far its growth shows no signs of slowing. According to a recent San Jose Development Projects Update, 577 residential units, nearly 1.2 million square feet of office space and more than 246,000 square feet of commercial have been submitted for approval since August of 2019, excluding the Google project. However, Google is anticipated to add up to 7.3 million square feet of office, 5,900 housing units and 500,000 square feet of commercial space.

It is unclear how J.P. DiNapoli will utilize the 95 S. Almaden Avenue site moving forward, but with downtown San Jose’s development climate, there are certainly several options for high-rise multifamily or office development.

West Coast Commercial Real Estate News