Hundreds of homes may sprout in San Jose with double-tower complex
SAN JOSE — A planned double-tower housing complex could produce well over 500 residential units in downtown San Jose, but the proposal arrives as sky-high interest rates make for costly construction loans.
The residential project would be built at the corner of East Santa Clara Street and South Sixth Street next to San Jose City Hall, according to documents on file with municipal planners.
The project’s most striking features are two 28-story connected towers, conceptual images show.
The housing high-rises are being planned at a property with addresses of 262 to 268 East Santa Clara St., the San Jose municipal records show.
The development is slated to produce 529 housing units, with terraced upper levels and roof decks with gathering areas and open spaces.
Along with the housing, the project also envisions 21,000 square feet of restaurant and retail space, and another 12,000 square feet of office space.
A restaurant and small amount of retail are planned for the ground floor, according to the proposal.
The office space would be built on the second floor.
Two bars are planned for the top of the northern tower, while a lounge is planned for the roof of the south tower.
The 529-unit housing component of the project features 348 one-bedroom units, 114 two-bedroom units, 63 studios and four three-bedroom units. The three-bedroom residences will also include a den.
A swimming pool deck is planned for the fifth floor of the connecting area. A dining area is being eyed on the fifth floor of the north tower.
The property totals 0.8 acres, documents on file with the Santa Clara County Assessor’s Office show.
The site’s value was $2.5 million as of early 2023, according to files at the county Assessor’s Office.
Bale Properties, located in San Jose, is listed as the owner of the parcel where the project would be built, documents filed with a real estate database show. TNT Development Services Inc., represented by Trang Tu Nguyen, is the applicant for the project.
Lee’s Sandwiches, Nu Tung Kee Noodle House and Miskarie Hair Salon, along with a surface parking lot, now occupy the site.
A building occupied by Grocery Outlet is not part of the site where the development would occur, the planning documents show.
The project, if completed, would be a striking addition to the San Jose skyline and would exceed the height of the tower section of San Jose City Hall.
However, it’s unclear whether it is realistic for a developer to construct the tower in the current interest-rate environment and the resulting constraints on commercial real estate development.
“This is a great-looking project, but I don’t believe this is feasible,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy. Staedler pointed to the rooftop lounge and bar as amenities that could increase the project costs.
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