By Meghan Hall
San Francisco-based Jay Paul Co. has snapped up two properties at the corner of Park Ave. and S. Almaden Boulevard in a deal that closed Friday. Jay Paul paid local developer John DiNapoli and realty investment trust Blackstone $100 million for the properties. Mark Schmidt of CBRE represented the sellers, while Phil Mahoney, exective vice president at Newmark Knight Frank, represented Jay Paul.
The two properties, located at 200 Park Ave. and 282 S. Almaden Blvd., were purchased for $50 million a piece. Jay Paul paid cash for the properties, which are currently developed with several commercial businesses and a parking lot. The sites are also directly across the street on Park Ave. from the Cityview Plaza mixed-use complex, which Jay Paul purchased in July of 2018 from Equus Capital Partners for $283.5 million. Jay Paul is currently working through plans to redevelop the site.
“This is going to be a single development,” said Matt Lituchy, chief investment officer at Jay Paul, to the Mercury News.
According to sources familiar with the transaction, Jay Paul will break ground on the office tower, the first since the construction of River Park II, in late summer. The building will be approximately 800,000 square feet.
Plans for Cityview Plaza indicate the development could include 3.4 million square feet of office space. Currently, Cityview Plaza includes 534,036 square feet of office space and 45,505 square feet of retail across nine buildings and 11 acres. The office complex has the capacity to serve tenants looking for spaces between 5,000 and 60,000 square feet.
Jay Paul is one of the region’s biggest developers of both residential and commercial office space, and the firm has dived head-first into the San Jose market. In August of 2018, the company purchased 1 N. First St. for $46 million, just after its acquisition of Cityview Plaza. Just weeks ago, Jay Paul was announced as the buyer for 50 West San Fernando, formerly known as the Knight Ridder Building. The company is estimated to pay DivcoWest and The RockPoint Group in excess of $235 million, or more than $683 per square foot for the property.
Since its founding in 1975, Jay Paul has focused on the acquisition, development and management of Class A, tech-oriented commercial properties throughout California. Currently, Jay Paul has successfully developed more than 11 million square feet of space and has an additional six million square feet in its active development pipeline.