Developer preps home sales in big San Jose tower
SAN JOSE >> A developer that owns long-stalled projects in downtown San Jose is about to start selling homes in one of its housing towers, a welcome counterpoint to the real estate company’s other challenges.
Z & L Properties said it is poised to launch sales of condominiums in one of the two towers at its 188 West St. James project in downtown San Jose.
The company also said it’s evaluating the future of two other key projects that it owns, including the possible sale of the sites or pushing ahead with their development.
These two key undeveloped properties in downtown San Jose are:
• Park View Towers, a two-highrise development with 221 residential units at 43 E. St. James St. The residences would flank the historic First Church of Christ Scientist, which must be revamped and restored before the project can proceed.
• The former Greyhound station at 70 S. Almaden Ave., where two towers totaling 708 residential units along with ground-floor retail are proposed. Construction work has yet to begin on the site.
China-based Z & L Properties, which has a local office in Foster City, is optimistic about beginning the sales of condominiums in the western tower at 188 W. St. James.
“The project at 188 W. St. James is one of the first forsale condo opportunities to come to the market for some time,” said Sam Singer, a spokesperson for Z & L.
These sales are expected to begin in September, according to Singer.
“188 West St. James is doing very well,” Singer said.
The complex totals 640 residential units, roughly 320 in each of the towers. The project will also include 32,000 square feet of ground-floor retail and will feature a big amenities deck.
The developer is convinced the downtown will be bolstered by projects such as Google’s transitoriented neighborhood of offices, homes, shops, restaurants, hotel facilities, entertainment centers, and cultural hubs near the Diridon train station.
“Z&L believes downtown San Jose is a hot market that will continue to attract buyers, with increasing opportunities in the area for top talent, such as Google’s expansion, as well as dining and entertainment offerings like San Pedro Square Market,” Singer said.
Two other Z & L projects downtown face more uncertainty than the prospects for 188 West St. James.
The historic church building where the Park View Towers development is planned next to St. James Park is currently wrapped in a tarp that is tattered and torn.
City officials and real estate executives are concerned about the safety of the historic church, which was built in 1905.
Fires have scorched historic San Jose buildings on two occasions in 2021.
“We definitely don’t want an issue to occur at the church property,” Nanci Klein, San Jose’s director of economic development, said in an interview earlier this week.
Both the church site and the Greyhound property are areas of great concern, in the view of Bob Staedler, principal executive with Silicon Valley Synergy, a landuse consultancy.
“These sites are blighted and dangerous to members of the public,” Staedler said in a prior interview. “In the case of the Greyhound site, that is dangerous to the surrounding buildings.”
At the historic church, Z & L spent $1.5 million to remediate asbestos in the building, according to Singer.
“That building has overwhelming issues,” Singer said. “The roof of that building has issues. Z & L is doing its best to protect the church. The company is in the process of repairing the tears in the church tarp. It is a costly endeavor to rehabilitate the church. But it’s an incredible property and an incredible location.”
Z & L insisted that the company has not neglected either the church site or the site of the former Greyhound bus terminal.
“We are evaluating options for both the Greyhound site and the church site,” Singer said.
In May, Z & L yielded ownership of one of its development sites, a 1.6-acre property near the corner of Terraine Street and Bassett Street. Z & L’s plans for a big residential tower at that location had stalled.
An alliance led by global developer Westbank, local developer Gary Dillabough, and San Jose-based Terrascape, a firm headed by real estate veterans Tony Arreola and Mark Lazzarini, paid $11.4 million for the choice parcel. The property is in a downtown district known as the North San Pedro neighborhood.
“It is undetermined right now what is going to happen with Greyhound and the church properties,” Singer said. “We are looking at development. But people are also approaching us to buy the properties.”