SAN JOSE – A prime San Jose site slated for a major office, retail and fitness center is now being eyed by a veteran residential developer, suggesting redevelopment is planned for the property.
The location is 3896 Stevens Creek Boulevard in San Jose, not far from the mega centers Westfield Valley Fair and Santana Row.
According to a proposal by real estate firm Cypress Equities, an office complex, retail space and a fitness center would be built on the site.
Cypress Equities proposed building a 280,000 square foot office building with 15,000 square feet of ground floor retail space, and a 120,000 square foot Life Time Athletic Resort fitness co-anchor on the same site.
Back then, around 2020 or 2021, the proposal seemed like a sure thing. Tech companies were still expanding on a massive scale. The tech sector was hungry for huge office space and even land.
But around 2022, technology companies suddenly stopped looking for new locations to expand. They began cutting jobs and downsizing their corporate footprint.
To make matters worse, rising inflation led to astronomical interest rates. This unfortunate combination resulted in costly real estate loans and large increases in the price of materials and labor for construction projects.
Groundbreaking is pending for the mixed-use building at the corner of Stevens Creek Boulevard and Saratoga Avenue. Two restaurants, Hokkaido Buffet and Tacos Santiaguito, are the main businesses on the property.
Cypress Equities has entered into a contract to sell its interest in the property to an affiliate of Texas-based Holland Partner Group, according to documents filed with the Santa Clara County Registry of Deeds.
County records show that Dallas-based Holland Partner Group and Cypress Equity negotiated a deal under which Holland Partner would acquire a leasehold on the 4.7-acre site.
Holland Partner Group is a real estate company that has developed or purchased 40,000 residential units since its founding in 2001.
“Our goal is to create sustainable, socially connected places where people work, live and enjoy life,” the company explains on its website.
In addition, Holland Partner Group is looking for ways to make residential real estate more affordable, the company’s website says.
“Our municipalities must add value to society and help solve the housing crisis in our country,” Holland’s website states. “We must actively support measures that make housing more affordable for renters. We must focus on building housing close to job centers and promoting walkability.”
