Big downtown San Jose housing tower edges closer to construction start

Housing high-rise would bring San Jose several hundred residences

SAN JOSE, Calif. — An eye-catching housing high-rise proposed for downtown San Jose is getting closer to breaking ground. The tower could add hundreds of new homes to the city’s struggling downtown.

If the residential tower is built, it could become a green shoot of development activity in downtown San Jose, which is struggling to recover from the economic devastation caused by coronavirus-linked business closures.

The high-rise, known as Orchard Residential, would be built on the site of the former Bo Town restaurant, which was located at 409 South Second Street until it closed in 2019.

According to documents filed with the Sant Clara County Recorder’s Office, the 30-story tower will house 540 people.

The new tower is being built by a real estate partnership between Westbank, a global mega-developer, and Urban Community, a local developer led by Gary Dillabough and Jeff Arrillaga.

A “construction logistics agreement” between the Westbank-Urban Community alliance and real estate executive Richard Berg, who owns several downtown San Jose properties adjacent to the proposed tower, is the latest sign that the high-rise is nearing completion.

According to several sources familiar with the project who asked not to be identified because they are not authorized to speak publicly about the development, the tower could begin construction as early as November. Westbank and Dillabough did not respond immediately to a request for comment.

The construction agreement was detailed in documents filed with Santa Clara County officials.

The agreements cover construction activities that Westbank will carry out as it constructs the tower. Construction crane operations, scaffolding, shoring, tie-back installation (wires or rods that reinforce retaining walls), building maintenance, rights of entry, and property easements are among the activities listed in county documents.

Westbank also stated that it would carry out construction in a way that would have the least impact on Richard Berg’s adjacent properties.

According to real estate records, the Berg properties involved in the construction agreement are located at 400, 410, 420, 434, 450, and 452 South First Street.

“It would be exciting to see this get started,” Berg told this news organization in an interview. “It will be a real shot in the arm for downtown San Jose to get this built.”

Westbank has proposed several projects for development in downtown San Jose.

Westbank’s plans for the area include a renovation of the historic Bank of Italy Tower. The company is finalizing plans to convert the office tower at 12 South First Street into a housing high-rise.

Westbank’s brand-new projects have yet to reach the point of vertical construction or even foundation excavation.

As a result, the construction of the Orchard Residential tower at the intersection of South Second and East San Salvador Streets would be a significant milestone for both Westbank and downtown San Jose.

The Orchard Residential tower is expected to add vibrancy to downtown San Jose’s SoFA (South First Area) district by housing several hundred people.

“It’s a key infill site for SoFA and will be an important project for the downtown,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consulting firm.

Westbank’s next step is to secure construction financing for the Orchard Residential project. According to sources, the development giant is nearing the end of the process to secure construction funding.

“Getting this high-rise underway and starting construction is very important in terms of showing the strength of downtown San Jose,” he said.