Developers buy site of 4th Street Pizza to ensure area maintains its vibrancy
Group is building residential complex in downtown S.J.
SAN JOSE >> The developer of two of downtown San Jose’s tallest towers has bought a historic building that’s rented to a prominent pizza parlor, hoping to guarantee a lively retail scene across the street from the future residential complex.
Bayview Development Group, acting through an affiliate, has bought a historic
brick building at the corner of South Fourth and East Santa Clara streets that’s right across the street from City Hall and the site of the under-construction Miro residential towers.
“In this case, the building
is adjacent to one of our core projects,” said Ted McMahon, chief investment officer with San Jose-based Bayview Development, which is developing Miro.
Miro, which will consist of a pair of 28-story residential towers, is poised to dramatically re-shape San Jose’s skyline and would bring 630 units to the area.
The Bayview Development affiliate, Sunstone Fund I, paid $4.5 million on Feb. 1 for the twostory building, according to Santa Clara County public documents.
The building contains ground-floor retail, including 4th Street Pizza. It also has residential units upstairs.
Historically known as the State Meat Market, the building was originally constructed in 1900, according to San Jose’s list of city landmarks. The building is
in the style of “Edwardian commercial,” according to the National Register of Historic Places.
Bayview Development bought the 11,000-squarefoot building, located at 148 and 150 E. Santa Clara St., despite its growing reluctance regarding purchases of downtown properties.
“Generally, we’ve dialed back acquiring in downtown,” McMahon said. “Pricing has become unrealistic relative to our current rent projections.”
Prices have risen as investment, development and tenant interest in downtown San Jose has intensified in recent years, partly due to mega expansions being planned by two tech behemoths.
San Jose-based Adobe, which now occupies a three-skyscraper headquarters campus near Park Avenue and South Almaden Boulevard, is actively planning construction of a fourth tower next to the existing complex, enough new space to accommodate 4,000 of the tech titan’s workers.
Near the Diridon train station downtown, Google has proposed development of a transit-oriented community of office buildings, homes, shops, restaurants and parks where 25,000 people could work, including 15,000 to 20,000 of the search giant’s employees.
At the Miro, the development will also offer 18,000 square feet of commercial space, including enough room for a sitdown restaurant, a coffee shop and other retailers.
Bayview executives believe the recent purchase will bolster the retail and restaurant efforts at Miro, and benefit the development’s future residents.
“We want to do our part to ensure the neighborhood has owners that care about creating a vibrant community,” McMahon said.
And for now, 4th Street Pizza will be retained as a business that can add to that vibrancy.
“We like the actual pizza and the tenant,” McMahon said. “No current plans for any change.”