VTA's old campus will become housing

What will become of the old VTA office space when they move into the shiny blue tower at 488 South Almaden in Downtown San Jose? They currently have over 200,000 SQFT of space in North San Jose. It turns out that the 17-acre campus at 3331 North First Street will likely become housing. 

The VTA is not planning to sell the property after moving into it's new home. Instead they are planning to ground lease the land for transit-oriented development projects. VTA has not announced which developers they plan to work with.

The property could support up to 1,300 new homes and the location is in the Golden Triangle near thousands of San Jose tech companies. 

In order for this project to move forward, VTA will have to move into it's new home first. This isn't expected until 2026.

Source: SVBJ

380 North 1st apartment project moves forward in North San Jose

A seven-story apartment project at 380 North 1st street is moving forward to environmental review. The proposal is an infill project that will replace a two-story commercial building at the edge of Downtown San Jose (5 minute walk to St. James Park).

The apartment building will have 118 homes, 18 of which will be designated as affordable units. There will be 74 parking spaces at the ground level using a car stacking system that will stack up to three cars on top of one another. There will also be parking for 30 bicycles and a bike cafe. An amenity deck is situated on the third floor and a clubroom with a balcony on the sixth floor.

Overall it's a significant upgrade from what was there before and is close to both Light Rail and transit lines (Buses 72 and 73 stop across the street).

Source: SF YIMBY

Petiscos and LeYou added to the Michelin Guide

Two San Jose restaurants were recently added to the Michelin Guide for the first time. Just being mentioned in the guide means the restaurants are worthy of a visit.

The first is none other than Petiscos in SoFA. This restaurant comes from a very special pedigree since the owners are the same as ADEGA, the first and only restaurant in San Jose to ever get a Michelin Star. Petiscos has a wide variety of Portuguese small plates designed for sharing with family and friends and some seriously delicious and unique cocktails you can't find anywhere else. The interior features a hand-painted mural of Five Wounds Portuguese National Church, a San Jose landmark off of Highway 101. It's well worth a visit and is reasonably priced given its background. At Petiscos I would highly recommend the flaming chouriço, shrimp turnovers, green bean tempura, duck rice (my favorite), octopus, peas & eggs, the pica pau, and the chocolate mouse. The Sangria and Gintuga won't disappoint if you're looking for a libation.

The second restaurant is LeYou Ethiopian off of First Street. While I haven't been there in person, it was one of the best Doordash meals I've had. With a newborn it's become a challenge to get out to new restaurants in person. I would recommend the platters and extra injera bread so you can try as many flavors as possible. I'm a total carnivore, but the vegetarian dishes blew me away. Definitely get the Four Vegetarian Sampler and the Beef Tibs. If you can handle some spice, the Katenga (toasted injera) was something I've never had before at an Ethiopian restaurant.

After a rough few years, it's great to see that the San Jose food scene is still alive and well! Bon Appétit.

Brand new Bay 101 Casino is now open for business

M8trix finally has some decent competition with the first phase of Bay 101's complex officially open. Of course, the casinos really don't see one another as competition--but as a part of complementary offerings that draw gamblers and entertainment-seekers to the area. Bay 101 even strategically located themselves on North First Street just blocks away from M8trix.

The new Bay 101 looks really sleek and is filled with modern touches like dynamic lighting, open spaces, and abstract art. The building spans 68,000 SQFT and has 49 gaming tables. Bay 101 also features a flagship Asian fusion restaurant called The Province, which is owned by the same people as Sino, Straits, and Roots & Rye at Santana Row. The restaurant will be higher-end than anything at M8trix (or the immediate area for that matter) and bring with it some nightlife and one of the most impressive outdoor patios in San Jose.

Future phases of the Bay 101 project include two hotels and a 237,000 SQFT tech campus. The first hotel is an Embassy Suites with 174 rooms in a seven-story building. For the development enthusiasts out there, yes that is a huge missed opportunity for one of the few parcels in San Jose where a 35-story building is not only economically viable but allowed by airport regulations. Perhaps they will think bigger for the second hotel. One thing is for sure, Bay 101 is going to help make North San Jose a lot more interesting.

Source: The Merc, hat tip to Arnold Kwok for sending this in!

New boutique hotel proposed on North Fourth Street

An aging 10-room motel at 1036 N. Fourth Street (first photo below) may be transformed in slick boutique hotel. The proposed project would have 60 rooms across four floors, underground parking, and an impressive rooftop terrace with a living wall of plants, a bar, and BBQ area. Speaking of BBQ, one of my favorite restaurants and one of San Jose's few Michelin-ranked restaurants is located down the block: Smoking Pig BBQ.

The proposed hotel is near the bulk of San Jose's tech jobs, making it a near guaranteed success during the workweek. The big question would be how well it could do on the weekends in this location. I hope they can make it work since it would be a big improvement over what is standing there now.

Source: SVBJ

San Jose's Viptela raises $75 million

Viptela is a software-defined computer networking startup that is based in North San Jose. The company has just announced a $75 million funding round to help it ramp up globally. This will bring its total funding to nearly $110 million and its valuation to around $900 million.

The new dollars will be used to scale up sales, marketing, support, and R&D. Viptela has already grown its workforce to 150 in the past year and is planning to hit 200 employees by the end of the year and 300 employees by then end of 2017. With all of the downsizing happening in the Valley right now, it is nice to see some companies bucking the trend (especially in San Jose).

Viptela is located at 1732 N. 1st Street, Suite #600.

Source: SVBJ

LeEco chooses San Jose for their North American headquarters

LeEco is an innovate Chinese company that is involved a multitude of high-tech businesses. They make smartphones, smart TVs, and are now working on autonomous cars. They are also a leading provider of streaming content in China (and are sometimes referred to as the Netflix of China). San Jose just scored a big win as LeEco recently decided to locate their North American headquarters here.

The new office is located at 3553 North 1st Street, conveniently close to just about every other major tech company on the planet. The 80,000 SQFT building could be home to as many as 800 new employees by the end of the year. LeEco will primarily use the space for cutting-edge R&D in both artificial intelligence and autonomous driving, two markets that will help drive the next wave of tech innovation.

Below is a short video and photos courtesy of the SJSV Chamber of Commerce.

Another office campus planned for North San Jose

I have already lost track of how many office projects are proposed in North San Jose, they just keep on coming in. Lincoln Property Co. is teaming up with Gemdale Corp. to make one of those projects a reality. Midpoint@237 consists of four new office buildings off of North First Street just past 237 (going towards Alviso). The buildings would total up to 415,000 SQFT and be between two to three stories with 40,000 SQFT floor plates.

While they are not as tall or dense as I would hope for a 2016 project in San Jose, it will bring more tax dollars and jobs into the area. Next door there are also plans for up to 564,000 SQFT of advanced manufacturing space--perfect for a company like oh, let's say Apple or Tesla.

Construction is expected to begin next quarter with completion expected in the third quarter of 2017.

Source: SVBJ

Google Signs Another North San Jose Lease!

Google is finally stepping up to the plate and joining Apple in acquiring commercial space in North San Jose. The company leased two buildings at the corner of North First Street and Trimble (2600 North First Street and 75 E. Trimble Road). This will give Google 174,000 SQFT, a rounding error compared to their Mountain View Campus.

This is actually their second San Jose lease. Google's first San Jose location was 40,000 SQFT at 2460 North First Street. That was just a dipping their toe in the water. Now they have both feet in and could potentially jump in for a swim. Google is going to need far more space than what Mountain View can provide. If San Jose proves to be a good partner for them, it will mean much larger investments in the future.

Keep in mind that Google is just one piece of parent company called Alphabet. There are many other great companies under that umbrella that could use offices located in the Golden Triangle with easy access to manufacturing facilities and semiconductor fabs (Nest, I'm looking at you).

Source: SVBJ

North San Jose R&D Vacancy Finally Dips Below 10%

After a painful recession and years of recovery, North San Jose commercial space is finally back on solid footing. The last couple tech companies to move into the "golden triangle" were enough to bring the Research and Development (R&D) vacancy rate below 10% for the first time in many years. Usually development picks up substantially when vacancy is in the single digits.

The two most recent companies that moved to North San Jose are Silver Spring Networks and ForeScout. Silver Spring is a smart grid  provider that relocated from Redwood City to 190,000 SQFT on 210 and 230 W. Tasman Drive. ForeScout is a cyber security company that moved from Campbell to 95,000 SQFT at 190 W. Tasman Drive.

Source: San Jose Economy Newsletter

Broadcom Buys North San Jose Business Park

Broadcom is dropping $207 million for 26 acres in North San Jose that is already approved for up to 1.1 million SQFT in office space. They are purchasing the land from Boston Properties, which hopefully will reinvest those funds in San Jose (They have three proposed office towers in Downtown San Jose).

The location is a vacant business park at 3200 Zanker Road, next to Crescent Village. Apple now owns 80 acres of land not far away and supposedly other large deals are in the works. The North First district went from having the highest vacancy rate in San Jose to being in huge demand over the course of just five years!

Source: SVBJ

Apple Pondering San Jose Campus of up to 4.15 Million SQFT (!!!)

Apple has quietly been acquiring 86 acres of land in North San Jose stretching from Highway 101 all the way to North First Street. Finally, it sounds like their master plan is coming together. While Apple has not submitted a formal proposal for a project, they have come to a development agreement with the City of San Jose that would allow a staggering 4.15 million SQFT of development. This scale would surpass even the Apple Campus 2 project in Cupertino (the giant spaceship).

If even half of that gets built, it would have a dramatic impact on San Jose's tax base, the balance of housing/jobs in the city, and our overall brand. The only negative that stood out to me is the elimination of the height requirement on North First Street (105-feet). That means Apple will likely opt for 4-6 story buildings instead of pushing the limits of office campuses like Samsung did with their San Jose headquarters. I'm sure we'll be hearing a lot more about this one in the future.

Source: SVBJ

The Station on North First - 1.6 Million SQFT Office Project

According to Robertee from The San Jose Development Forum, Boston Properties has ramped up marketing for their largest proposed project in San Jose--"The Station on North First." The office project would include up to 1.6 million SQFT of high-end office space, 10,000 SQFT of retail, and large open spaces filled with amenities. Check out the latest renderings and highlights below.

The Station on North First Highlights

• 24.3 acre campus
• 10,000 SF of retail space
• Convenient below ground parking
• Active, transit-oriented boulevard
• 5 - 10 story buildings arranged around two programmed quads
• The Quads & Grand Boulevard link the buildings and create a cohesive urban experience
• Each campus building features a double-height Great Room
• The Great Rooms serve as main entry points and lobbies, while offering communal space that can house a variety of events
• Indoor and outdoor fitness opportunities and amenity space
• Both social and sports outdoor areas
• Visual connectivity between buildings
• Connected floor plates up to 154K SF
• Typical floor plate: 35 - 45K SF
• Retail and urban plazas on North First Street
• Social gathering and recreation quads
• Collaborative Great Rooms and amenities
• Abundant natural light

Samsung's New San Jose Headquarters is Complete!

Last week Samsung officially unveiled their new 1.1 million SQFT North American Headquarters in San Jose. The ten story main building (technically two connected towers) is state-of-the-art. Each floor is no more than one staircase away from expansive outdoor gardens, the floor plates are huge, ceilings are high on every floor, and the campus has every amenity you can think of (yes, that is a putting green in the sky photographed below). 700 employees have already moved in, but the building will accommodate up to 2,000 workers.

Check out some of the best photos I have found of the new campus below.

Source: CNET

NextEV (Chinese Tesla Competitor) Building R&D in San Jose

There is a little known fact that before purchasing the NUMMI plant, Tesla was trying to build their factory in North San Jose. Since they would not qualify for federal incentives at that location, the deal fell through. However, Tesla still does have some history with San Jose as they chose to open the first Tesla Store in San Jose--which is still considered to be the United States flagship store. I should also note that they are rumored to be seeking office space in San Jose.

Well, it turns out Tesla won't be the only electric vehicle (EV) company in town for very long. A Chinese company called NextEV has selected North San Jose as their location for a significant R&D center. The company already has a supercar that competes in the Formula E racing series. Now their goal is to manufacture a mass-market electric car in 2017 for the Chinese market as well as a US-bound electric car in 2019. The company seems pretty serious unlike previous EV companies like Coda. They have hired a former CEO of Maserati and poached employees from both Tesla and BMW.

NextEV has leased a 85,000 SQFT building at 3200 North First Street. The R&D center will focus on "connected car" functionality. Manufacturing will be done in China while car design will be handled in Germany.

Now all we need is an Apple facility for their future self-driving cars as well as a relocation of the Tesla Headquarters to San Jose--then we'll have hands-down the EV capital of the world.

Source: SVBJ

Bay 101 is Moving Forward With a New Cardroom

Ever since Bay 101 purchased the San Jose Airport Garden Hotel on North First Street years ago, we knew it was just a matter of time before they would move ahead with a new project closer to M8trix. That time is apparently now, demolition of the 512 room hotel is going to begin by the end of the year. Bay 101 is going to construct a new casino and hotel worth around $100 million on that site.

The new card club will be two stories, 67,836 SQFT, and the same number of card tables as the current location (49). The layout will be more spread out and they are planning to do a high-end restaurant as an added attraction. The hotel would be seven stories and 174 room, which is actually much smaller than the hotel is replacing. It is too bad they are not planning to go larger with the first phase, because we really could use the extra hotel rooms.

There is a second phase being planned with a 10 story hotel tower and 150 rooms. In an area that could easily accommodate a 30 story hotel building (which would draw extra attention to the cardroom), this scale is very disappointing to me.

The parking lot east of the card room could also be developed into a 250,000 SQFT office building with 12 stories, but that would be in a far later phase. Bay 101's new home should be ready for gaming by Fall 2017.

Source: SVBJ