Office building eyed by county Housing Authority
SAN JOSE >> Santa Clara County’s Housing Authority is contemplating the purchase of a big office building in north San Jose that was once occupied by the now-defunct Silicon Valley operations of China-based tech firm LeEco.
The potential interest of the county housing agency in the vacant office building at 3553 N. First St. in San Jose as its future headquarters has come to light in public documents.
Initially, the county Housing Authority anticipated it would be the principal office occupant of a mixed-use village in downtown San Jose at 675 E. Santa Clara St. that would include offices, homes, and retail.
Cost considerations, however, have prompted the county agency to cast about for a less expensive alternative, which in this instance, appears to be the purchase of a building at the corner of North First Street and Rio Robles in north San Jose.
“The building at 3553 N. First Street meets the established criteria to serve as Santa Clara County Housing Authority’s new main office,” according to a staff memo prepared for a recent meeting of the agency’s board that was prepared by Sharon Jones, deputy executive director of the Housing Authority.
The North First Street Building, located alongside the light rail tracks, totals 86,100 square feet, the county documents show. Brokers Joe Kelly and Jon Mackey of Newmark, a commercial real estate firm, have been marketing the building.
The building once was occupied by the Silicon Valley operations of Chinabased LeEco, a formerly high-flying tech and consumer electronics giant that nose-dived in 2017, chopped at least 300 jobs in San Jose, and eventually shut the doors of its North First Street offices.
In 2017, an affiliate of China-based Han’s Holdings paid $36.2 million for the building. LeEco was still the tenant in the building when Han’s purchased it.
In May 2020, a county Housing Authority analysis determined that the cost of developing a brand-new office building and garage at 675 E. Santa Clara St. as part of a mixed-use village would be around $90 million.
The county housing agency’s board authorized the authority’s executive director “to negotiate and execute a purchase and sale agreement with Han’s San Jose Hospitality for the property at 3553 N. First Street in an amount not to exceed $37.35 million,” a county document stated.
North First Street could make sense as a new headquarters for the Housing Authority, which is in cramped quarters on West Julian Street in downtown San Jose.
“It’s far cheaper for the Housing Authority to buy an existing building rather than develop a new one,” said Bob Staedler, principal executive with Silicon Valley Synergy, a project strategist. “Being on the light rail line can help meet climate goals.”
The county’s potential purchase of the offices on North First Street leaves the prospects for the downtown San Jose village development somewhat unclear.
“If the Housing Authority moves to the north San Jose location, it might be out of sight, out of mind for the downtown project,” Staedler said.
California continued to loosen its COVID-19 restrictions Oct. 20, announcing that counties in the moderate and minimal risk tiers on the reopening system could hold outdoor professional sports events with a limited number of spectators in attendance.
But not in Santa Clara County, which criticized the state’s guidelines in announcing that no spectators will be permitted at San Francisco 49ers and San Jose Earthquakes games this year. Santa Clara and Alameda counties are in the orange tier (Tier 3), while San Francisco on Oct. 20 moved into the yellow, or minimal, risk level (Tier 4).
Here is what it means to each of the Bay Area’s professional sports teams for the moment:
49ers: The 49ers welcomed the state’s decision that would have allowed about 14,000 fans to watch games at 68,500-seat Levi’s Stadium. But Santa Clara County public health officialssaiditwastooriskyto allow any fans into games. County chief executive Dr. Jeff Smith called sports events “super spreaders” that could potentially lead to an outbreak.
“Without some kind of other treatment besides social distancing, having these large congregations is a great risk no matter what,” Smith said in a news conference. “That was the very first activity that was precluded because it was such a high risk. It will be the last one that the county would consider opening.”
Earthquakes: The county’s response also spoiled hopes for the Quakes, who could have 3,600 fans in its 18,000-seat stadium according to state guidelines. The MLS team has two regular-season home games left: Oct. 28 against Real Salt Lake and Nov. 1 against Los Angeles FC. But the Earthquakes also could host playoff games this year. All of the games — regular season and beyond — will be played in an empty Earthquakes Stadium.
Sharks: The NHL season is expected to start Jan. 1, but the state’s guidelines released Oct. 20 apply to outdoor events only. Based on Santa Clara County’s reaction Tuesday it is doubtful public health officials will permit fans inside SAP Center anytime soon. Smith, the county executive, indicated Oct. 20 that until the country has an effective treatment or vaccine for the novel coronavirus, large gatherings will not be allowed in the county.
Warriors: San Francisco public health officials have some time before deciding what to allow for the Chase Center and Golden State Warriors games. Like the Sharks, the Warriors’ indoor facility poses a more challenging situation for health officials. The NBA season is expected to start in January or February. As we’ve learned this year, a lot can happen in three months.
Giants: The San Francisco Giants have even more time before learning the fate of their 2021 season. They would not play at Oracle Park until the end