SAN JOSE — The developer of a downtown San Jose housing and office project is pushing ahead with revamped plans that now envision the conversion of a parking garage into an office tower on the prime site.
The proposed development would produce 345 apartments at 323 Terraine Street in downtown San Jose, according to plans submitted by Westbank, a Canada-based real estate firm with a global reach.
Street-level view of a 345-unit housing tower at 323 Terraine Street in downtown San Jose, concept. (Studio Gang)
The Terraine project — which has yet to break ground — also would include an option to convert a proposed parking garage on the site into a large office building, according to the revised plans.
The housing portion of the project, located near the corner of Terraine Street and Bassett Street, would consist of a 17-story housing highrise, the proposal that’s on file with San Jose city planners shows.
Balconies and apartments in a 345-unit housing tower at 323 Terraine Street in downtown San Jose, concept. (Studio Gang)
In 2021, real estate allies Westbank and local developer Gary Dillabough teamed up to buy the site in the North San Pedro district of downtown San Jose, paying $11.4 million for the property.
The seller was Z&L Properties, a China-based real estate firm whose efforts to develop and land tenants for a series of housing towers in downtown San Jose have largely flopped.
The revamped Westbank proposal for the Terraine project suggests that the first phase of the development would produce a housing tower and a nine-story parking garage with 621 spaces.
At some point, depending on market conditions that presumably would differ greatly from the current murky outlook for the Bay Area office market, the parking garage would be converted into an office building.
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That office building would total 232,000 square feet. A precise time frame for the development of the offices wasn’t specified.
The housing tower would also feature 11,800 square feet of ground-floor retail space, the plans show.
Westbank has proposed numerous projects for downtown San Jose, including multiple office towers and housing highrises.
The developer is actively pursuing an effort to convert the historic Bank of Italy office tower at 12 South First Street into a housing highrise. Most of the 13 floors of that highrise would be converted into residential units. About 125 to 150 residences would be built inside the tower.
At 409 South Second Street in downtown San Jose, Westbank is hoping to break ground on a housing tower by the middle of the year. This project, located in San Jose’s hip and trendy SoFA district, would produce 540 residential units.
