Camera 12 site in downtown San Jose heads for renovation
SAN JOSE >> A major renovation of the long-shuttered Camera 12 theater in downtown San Jose is in the works, with developer Urban Catalyst planning to replace the defunct movie palace with modern offices and retail.
Urban Catalyst, which is riding a crest of development ventures in opportunity zones that offer favorable tax benefits for builders, envisions offices and active restaurant and retail spaces at the old Camera 12 site.
Acting through an affiliate, Urban Catalyst has bought the property from an affiliate led by busy developers Gary Dillabough, Don Imwalle, and Jeff Arrillaga, according to property records filed on Dec. 19.
“We are really excited about this,” said Erik Hayden, a managing partner with Urban Catalyst. “It’s going to be a really cool project.”
Paseo is the anticipated name of the project, according to Hayden. The development will be located at 201 S. Second St. in the Paseo de San Antonio.
Urban Catalyst intends to develop 15,000 square feet of retail on the first floor, and 73,000 square feet of offices on four floors in a complete makeover of the site.
“We are going to have some awesome ground-floor retail,” Hayden said.
The shell of the Camera 12 building will be preserved but the inside is slated for a far-reaching reconstruction. Work on the project is expected to begin by March or April 2020.
Urban Catalyst, acting through affiliate UC 201 S 2nd Street Owner, paid $24 million for the property, the county documents show. The new owner also obtained $13.6 million in financing from Bridge Bank.
Dillabough, who leads a separate development company called Urban Community, is an investor in one of the opportunity zone funds that Urban Catalyst has established.
“Gary is our partner in this project,” Hayden said.
The movie theaters abruptly closed in 2016 and since then, multiple plans for the site have been pondered and discarded. Housing and a cinema multiplex with a new operator were among the proposals actively considered for the Camera 12 property.
“Renovating this as an office building makes the most sense,” Hayden said. “Having a lot of activity on the ground floor will be very important.”
Urban Catalyst is in discussions with multiple local and national brands for restaurant and retail uses on the ground floor. A fitness center or sporting goods store are possibilities.
Since the movie theater structure contains mezzanine areas, Hayden believes four floors of offices could be possible with high ceilings.
“We want to add a lot of windows to the building,” Hayden said. “Right now, part of it is just a blank wall.”
Plus, Urban Catalyst may lean toward multiple office tenants, which could be a fertile market since a number of smaller firms may become displaced by major projects in the downtown area.
“This is a fantastic location,” Hayden said. “It’s behind the Fairmont Hotel, next to the Hammer Theater, it’s right next to a light rail stop, and on the Paseo de San Antonio.” Scott’s Seafood will be moving to a space adjacent to the Camera 12 property.
Urban Catalyst was formed to create funds that can capitalize on tax advantages provided by opportunity zones in places such as Oakland and downtown San Jose. The Camera 12 site marks the sixth project, all in downtown San Jose, an Urban Catalyst affiliate has purchased.
“We really want to make our mark here, to do our part to revitalize downtown San Jose,” Hayden said.