By Meghan Hall
Less than a year after it purchased San Jose’s Cityview Plaza for $283.5 million, developer Jay Paul Company has submitted plans to redevelop the block-long mixed-use office park. Jay Paul’s plans to redevelop the site, which it acquired from Equus Capital Partners in July of 2018, were confirmed in September and have been eagerly awaited by employers and developers throughout Silicon Valley.
Currently, the complex is composed of 534,036 square feet of office space and 45,505 square feet of retail spread across nine buildings and 11 acres. In addition, the campus currently includes more than 1,000 parking stalls within a subterranean and structured parking garage. Onsite amenities include a fitness and conference center and park-like plaza.
Jay Paul Co.’s plans for the property, submitted in mid-April, indicate that the existing complex will be demolished, and a three-building, 19-story mixed-use campus totaling 3.4 million square feet will rise in its place. Five levels of underground parking are also included in the project plans.
San Francisco-based global architecture firm Gensler has been hired to design the project.
“The new design for the 300,000 square-foot site will be a new landmark that will act as a catalyst for growth, invigorating the heart of downtown San Jose,” said Gensler in a statement.
The existing Cityview Plaza development is one of just a few Class A projects in downtown San Jose and has the capacity to serve tenants ranging from 5,000 square feet to 60,000 square feet. However, companies and developers alike are bullish on San Jose, with Google’s plans for Diridon Station expected to add an additional 6 to 8 million square feet of space to the Silicon Valley office market. The project site is also adjacent to Adobe’s headquarters complex, where the company plans to expand with a fourth office tower that could accommodate 4,000 Adobe employees.
Jay Paul Co. is one of the region’s biggest developers of both residential and commercial office space; in August 2018 the company purchased an aging office property at 1 North First St. in San Jose for $46 million, weeks after its purchase of Cityview Plaza. The company’s Moffett Towers, located in Sunnyvale, is home to Amazon, who took an additional 385,000 square feet at the complex in June 2018. In March of 2018, Facebook took three of the five buildings that Jay Paul is working to develop at Moffett Towers II, a 1.7 million square-foot campus on 47 acres in Sunnyvale’s Moffett Park district. Jay Paul Co. also plays landlord to Google, who in 2016, leased the entire 612,000 square foot Gateway development.
All three companies, among many others, are increasingly looking toward downtown San Jose for growth and expansion. According to the San Jose Downtown Association, downtown San Jose has less of 9 million square feet of office space. However, if approved, the redevelopment of Cityview Plaza would add to a wave of mega campus projects currently working their way through the approvals and construction pipeline in San Jose, as there are eight proposals for downtown San Jose which could add an additional 16 million square feet of office space in the coming years.
In addition to Google and Adobe’s plans for expansion, Boston Properties has proposed a 1.8 million square foot development on its long-held property at Almaden Blvd. and Woz Way, which could accommodate up to 9,000 employees, while Valley Oak Partners and TMG Partners have proposed a 1.023 million square foot campus called Platform 16 along New Autumn Parkway. In January 2019, Boston Properties entered into an agreement to co-develop the property, and construction of the project is anticipated to begin over the course of the next year. J.P. Di Napoli and Companies and BRE Hotels have also proposed a 20-story, 740,000 square foot office tower at 200 Park Ave., while Gary Dillabough, Charles Davidson, Tony Arreola and Mark Lazzarini plan to construct an office tower totaling up to 700,000 square feet at 255 W. Julian.
In all, the San Jose Downtown Association estimates the projects could add more than 60,000 employees to downtown’s employee base, giving a glimpse into the potential future growth in San Jose over the years to come.