Sand Hill Property Company’s 994-Unit El Paseo de Saratoga Mall Redevelopment Moves Forward in San Jose

San Jose, El Paseo de Saratoga, KTGY, Sand Hill Property Company, KRP Architects, Petersen Studio, BKF Engineers, Form4 Architecture, Palo Alto
Courtesy of KTGY

By Jack Stubbs

Sand Hill Property Company – which has developed and invested in more than 65 projects encompassing 20 million square feet of building area throughout Silicon Valley – earlier this year received positive news regarding the progression of another large-scale redevelopment project.

In mid-June, the San Jose City Council unanimously approved Sand Hill’s El Paseo de Saratoga project, a mixed-use village that will ultimately include nearly 166,000 square feet of commercial space and 994 residential units and replace El Paseo de Saratoga Mall, according to the proposal submitted to the city.

The approval a few months ago marks only the latest chapter in a much longer process that has spanned several years. In late 2019, The Registry reported on Sand Hill Property Company’s initial submission of its project plans. The project encompases two sites located at El Paseo de Saratoga Mall – 1000 Saratoga Ave. – and a small property across the street located at 1777 Saratoga Ave.

The first set of plans propose 720 units of housing and 25,000 square feet of retail at the El Paseo de Saratoga Mall site, while an additional 130 residential units and 120,000 square feet of office would be developed on the lot across the way. A total of 108,000 square feet, about a third of the current mall, would be demolished to make way for new development.

In January of 2019, the developer purchased the roughly 300,000 square foot mall from Newport, Calif.-based Terramar Retail Centers for $146.6 million. At the time of the transaction, Sand Hill also agreed to assume an existing mortgage on the property from Metropolitan Life Insurance that had a principal balance of $58 million.

In December of 2021, KTGY Architecture – the firm responsible for the design of the redevelopment – announced that it had won an MHN 2021 Excellence Award in the category of the “Best Unbuilt.”

KTGY also collaborated with KRP Architects on the shaping of the larger Master Plan for the redevelopment. Other project partners include The Guzzardo Partnership as the landscape architect, Petersen Studio, and BKF Engineers.

At the heart of this signature development is a reimagining of “Main Street,” according to KTGY’s Jessica Musick, principal and a member of the firm’s board of directors.

“The design is heavily focused on driving connection and walkability, with specific attention to the placement of the buildings,” Musick said at the time of the announcement. “The towers are grouped to create a circulation path accessible to a community park and revolving around a pedestrian-centric main drive easily zoned for farmers’ markets or food trucks.”

The redevelopment of the mall in San Jose represents just the latest update for Sand Hill’s burgeoning and growing portfolio throughout the region. In September of 2022, The Registry reported on the underway project designed by Form4 Architecture and located at 3300 El Camino Real near downtown Palo Alto. The two-story development – which will utilize mass timber construction, an environmentally sustainable alternative to concrete and steel – will comprise 50,355 square feet of office/R&D space and a 2,517 square foot amenity space.

Some of Sand Hill Property Company’s other assets in the Silicon Valley portfolio include 3000 Hanover, a 520,000 square foot life science/R&D development in Palo Alto; 2600 El Camino Real, a 70,000 square foot office/R&D project; and Folded Wings, an office/R&D development in Palo Alto totaling 192,000 square feet.

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