SAN JOSE — A downtown San Jose office tower that was recently upgraded may be converted to a housing highrise with scores of apartments or into a hotel with well over 100 rooms, plans on file with city officials show.
The new plans for the tower at 2 West Santa Clara Street in downtown San Jose represent a new indicator of economic shifts in the wake of the coronavirus outbreak and an uncertain return to the workplace.
DivcoWest, a savvy and veteran Bay Area development firm that owns the office tower, has floated plans for what would be a dramatic revamp of the highrise.
Apartments, co-living units, or hotel rooms, along with ground-floor retail or restaurant spaces, are the three primary options proposed by DivcoWest for the 10-story tower, which was built in 1910 and once was a Bank of the West site.
In recent years, DivcoWest launched a wide-ranging upgrade of the office building at a time when tech companies were known to be seeking an array of spaces for big-time expansions, including creative offices with unique settings.
COVID, however, unleashed numerous economic afflictions, including a drastic decrease in the tech sector’s appetite for office space.
Despite the waning of the coronavirus outbreak, tech workers were reluctant to return to their offices.
Even worse, starting in early 2022, tech companies curbed their desire for new offices, began to shed big chunks of space and started to chop Bay Area jobs at a brutal pace. The layoffs further diminished the need for tech expansions.
Here are the primary options that DivcoWest is considering for the office highrise at West Santa Clara and South First Street:
— An apartment version that would feature 65 residences and ground-floor retail right at the street corner that for numerous years was the site of a Walgreens pharmacy store until it closed in 2018.
— A co-living option that would consist of 73 residential units and ground-floor retail.
— A “micro hotel” version with 147 rooms and ground-floor retail.
In all three of the options, the retail space would total 1,500 square feet.
The conventional apartment version shows a small office space on the first floor and a second floor that would be all offices. The residences would be on floors three through 10. This version also features a work-from-home space and a fitness center.
The co-living option also includes offices on the first and second floors. Work-from-home spaces and a fitness center are among the features. Living room and kitchen spaces are included on floors three through 10. A large living room is on the fourth floor, along with what’s called a screening room, potentially for showing films or videos.
The hotel version includes a first-floor dining area and bar, along with the typical lobby and reception area. Amenities are offered on the first and second floors. A co-working space is located on the fourth floor.
In all three of these versions, the roof deck is on the fifth floor. Not all sections of the building have 10 stories.
The economic uncertainties and the tech sector’s retrenchment have forced office property owners to seriously consider conversions to residential uses.
But not all office buildings — partly due to their huge floor spaces — readily lend themselves to residential conversions.
However, smaller and older office buildings such as the 2 West Santa Clara tower — and the Bank of Italy historic highrise across the street — appear to be excellent potential candidates for conversions from offices to housing.
In part, that’s because the smaller offices in both buildings all have their own separate windows. As a result, the spaces have plenty of light all the way into the rooms, which creates a more attractive residential situation.
If San Jose city officials endorse the proposal, DivcoWest would have to undertake considerable work to make the revamp a reality.
“Conversion to new uses would require an architectural remodel as well as a structural and mechanical, electrical and plumbing systems remodel,” DivcoWest stated in a cover letter to the city about the new endeavor.