Not long ago, executives at San Jose’s Terrascape Ventures, LLC had never built an urban high-rise or thought deeply about drones. Now, all that could change.
Terrascape partners Tony Arreola and Mark Lazzarini have filed for a development permit to build two 19-story residential towers to be located in San Jose not far from a growing collection of other residential communities and offices as well as the city’s busy San Pedro Square.
Terrascape’s development, to be called Davidson Plaza Towers, is proposed for 255 W. Julian St. and would become the partners’ first high-rise, said Lazzarini, managing member of the company.
It will also be located one mile from San Jose’s Diridon station, which is gaining importance as a Bay Area transportation hub as federal, state and local governments have committed more than $8 billion in the next decade to add BART and high-speed rail to the station’s existing Caltrain lines.
Miami, FL-based Arquitectonica Architects is the architect of the project. Whether the 653 residential units will be available for sale or for rent is still under consideration.
Amenities will be finalized as the market-rate-only housing project moves through the entitlement process, according to Terrascape. So far, the group plans to include several amenity decks, a swimming pool in each building, a multipurpose room, an exercise gym and a play area for dogs.
The developer said it is still in the early stages of exploring as-yet undetermined “design components” that could accommodate future package deliveries to the complex from driverless delivery robots.
“To take it to the extreme, because we have balconies for every unit, is it possible to have deliveries to the balcony of your unit?” said Lazzarini, who added that perhaps one day drones could even deliver small packages to the buildings’ upper amenity decks. “Those are the ideas we are exploring…because we see market trends and are trying to address future demand for residents here.”
Arreola and Lazzarini are also executives with construction firm DAL Properties, LLC, which has developed single-family detached homes and high-density residential communities throughout Silicon Valley since the company opened in 2003. The partners formed Terrascape to focus on San Jose’s expanding high-rise construction market. The new high-rise complex is named in honor of DAL’s long-time developer, Charles Davidson.
Founded in 2017, Terrascape began exploring its current residential project in San Jose before tech giant Google proposed constructing 6 million to 8 million square feet of office space not far away, near Diridon station, to accommodate 15,000 to 20,000 Google employees.
“We’re seeing an interest in market demand for this type of urban lifestyle, where you are close to urban amenities and transit in a walkable community,” said Lazzarini.
Terrascape’s proposal includes replacing an existing 1984-era, six-story office building and a parking lot that’s now located on the 1.8 acre-site with 653 residential units. According to documents filed with the San Jose Planning Commission on Jan. 30, 2018, the project would include 125 studio units, as well as 282 one bedroom, 211 two bedroom and 35 three-bedroom units.
About 1,000 square of ground-floor retail space was proposed, along with 654 vehicle parking spaces, four levels located below ground and one located on the ground level. Also earmarked are parking spots to accommodate 176 bicycles.
As far as the project’s cost, Lazzarini said, “We’re still developing our cost figures. It’s early in the application stage, so we will be developing those in more details as we go along.”
He said there is no start date for the project, which must still be approved by city development regulators. “The city is in the process of updating its Downtown Environmental Impact Report plan, so we’re going to be subject to that process, as far as the environmental review,” he said. “That’s supposed to be completed by the end of the year.”
Much new housing, including town houses and apartments, is being planned for areas to the north and northeast of Terrascope’s residential project, Lazzarini said. Office towers are also under construction nearby, including Silvery Towers at 180 W. St. James St.
“It’s an area that is undergoing redevelopment in a private sense now, and so we’re going to see a lot more housing that’s adjacent to this particular site in the next two to five years,” he said.