Uber co-founder eyes public dining at S.J. food hall
SAN JOSE >> A downtown San Jose food hall venture by the cofounder of Uber could arrive with a new twist: public dining on the first floor of a historic building where a CloudKitchens venue is planned.
Public dining in the CloudKitchens project could create a more lively scene in that section of downtown San Jose.
Increased activation would be a shot in the arm for downtown San Jose, which has struggled to heal the economic malaise unleashed by more than a year of coronavirus-linked business shutdowns.
“This idea has strong potential,” said Mark Ritchie, president of Ritchie Commercial, a real estate firm. “The interior of this building would be beautiful. You would have restaurant customers on the ground floor.”
The downtown San Jose structure, formally known as the Odd Fellows Building, was originally constructed sometime around 1885. Portions of it represent the Italianate style of architecture
and feature cast-iron facades.
A venture controlled by Uber co-founder Travis Kalanick has proposed a revamp of the building that would transform the historic property into a CloudKitchens site that would accommodate
dozens of small commercial kitchens.
In 2018, a real estate venture led by Kalanick paid $7.3 million for the historic building, which has addresses that range from 82 through 96 E. Santa Clara St. The realty venture is called City Storage Systems.
Goldman Sachs Bank provided $100 million in financing for City Storage Systems, the Kalanickled group that bought the prominent building at the corner of East Santa Clara Street and South Third Street, according to county records. The loan was provided at the time of the property purchase.
Now, the Kalanick group is pushing ahead with an effort to dramatically change the uses in the building to transform it into a site for CloudKitchens, a company that Kalanick heads.
Part of the uses in the building would be a “public eating establishment,” according to documents on file with the city of San Jose.
“Counter type seating along the walls, as well as limited tables and chairs” would be among the features of the “dine-in” options on the first floor of the building, said Dana Peak, a San Jose city planner.
Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy, believes the Kalanick food hall in downtown San Jose is likely to be a top-notch venue.
“Travis Kalanick doesn’t do anything halfway,” Staedler said. “He knows he is building something that he wants to last. Kalanick is going to do the absolute best he can for both his business and the community.”
Diners could sample dishes prepared in the kitchen area of the building by established or up-and-coming chefs, creating the possibility of an ever-changing menu.
“We need to support these kinds of entrepreneurial efforts that can make downtown San Jose cool,” Staedler said. “Let’s see what Kalanick comes up with.”
As the downtown emerges from its coronavirus woes, unique venues such as the CloudKitchens endeavor will be needed to provide economic sparks, Staedler believes.
“You want reasons to go to the downtown,” Staedler said. “There is no one solution, you need a lot of things to happen. You want people to spend money, visit, and linger in the downtown.”