Plans to convert S.J. tower emerge
SAN JOSE >> A project to convert a downtown San Jose historic tower from offices to housing is taking shape — a proposal that could bring more than 100 residences and a rooftop restaurant to an iconic high-rise.
The Bank of Italy tower at 12 S. First St. in downtown San Jose is headed toward a wide-ranging conversion to transform offices into residential units on the vast majority of the 13-story building's floors, according to a proposal on file with city officials. Efforts to restore and renovate the tower have been underway for several years. The original plan for the tower envisioned a top-to-bottom, interior and exterior renovation of the high-rise, with relatively small offices for numerous tenants.
Canada-based megadeveloper Westbank and San Jose-based local developer Urban Community, which is headed up by real estate entrepreneurs Gary Dillabough and Jeff Arrillaga, are leading the renovation and conversion of the Bank of Italy tower.
When asked how many residences might be accommodated within the Bank of Italy tower as a result of the conversion, Dillabough replied in an interview with this news organization on Jan. 3, “125 to 150.”
The developers still are working with San Jose city officials to finetune the final details of the conversion effort.
“It's important for downtown that this project gets completed,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land use consultancy.
Residential units could be developed on at least 11 floors, the planning documents show.
“Floors two through 12 shall be reconfigured with new residential units, with new finishes, appliances and necessary electrical, plumbing and mechanical systems,” according to the proposal on file at City Hall.
The project envisions a residential area in the attic level of the tower, which is just below the landmark spire and cupola atop the Bank of Italy building.
Westbank and Urban Community are floating the concept of the conversion of the tower to residential
units at a time when the office market in the Bay Area suffers from an array of maladies.
The Bay Area office market's afflictions include record-high vacancy levels, a sluggish return to the workplace and the prospect that remote work is becoming a permanent feature of the region's economic landscape.
Dining and retail spaces also were planned for the ground floor and other key sections of the tower.
Perhaps the most striking feature of the original plan was the installation of an exterior staircase that would spiral up the outside of the tower. That exterior staircase proposal no longer appears in the latest version of the project.
The full-fledged renovation and restoration of the tower — and its transformation into an eye-catching Bay Area landmark — remain firmly in plans, the planning documents suggest.
New garden areas and upgrades would be added to the tower property on the terraces adjacent to the building.
A restaurant with some outdoor dining and gathering areas is slated to be built on one of the terraces, according
to the proposal.
Ultimately, the harsh economic realities that have wiped out the viability of the construction of new speculative office buildings also prompted Westbank and Urban Community to ponder a dramatic shift to residences in the tower rather than offices.
Since the offices were relatively small, each office had at least one window, allowing plenty of natural light into the space. That makes such spaces a suitable candidate for residential uses.
The plans also refer to an attic floor totaling 6,600 square feet, a lower penthouse of 1,400 square feet and an upper penthouse of 900 square feet. This suggests that the top floors could include some posh residences with dramatic views of the South Bay.
The proposal is poised to help activate the increasingly bustling Fountain Alley pathway that connects South First Street with South Second Street.
“The Bank of Italy reuse project is an extremely complicated and expensive jigsaw puzzle,” Staedler said. “The proposed changes seem reasonable and keep the historic nature of the building intact.”