Santana Row Tweaks Expansion Plans, Asks City for RezoningJan 29 2013 · 0 comments · NISHKIAN DEAN ·0
August 7, 2012, 10:34am PDT | by Mary Ann Azevedo | The Business Journals
Federal Realty Investment Trust is so eager to build a new 230,000-square-foot office building in Santana Row that it’s willing to give up some retail and residential for the right to do it.
The company is working with San Francisco private real estate investment and development firm Wilson Meany Sullivan on plans to turn a 185-space surface parking lot into a new six-story LEED Gold certified office tower at the southeast corner of Winchester and Stevens Creek Boulevard.
But in order to make room for the new office building, the developers are asking the City of San Jose to consider rezoning the 40.78-acre property to allow for less retail and about 15 percent fewer residential units than originally planned, according to Councilman Pierluigi Oliverio.
The City Council meets Tuesday at 1:30 p.m. to consider the request.
“They’re pulling back some of the residential to (be able) to build more office,” Oliverio said. “In the end they (Federal Realty) will have more office and restaurants than when they were approved in 1998, with a fraction less retail and fewer residential units.”
Earlier this year, Federal Realty and Wilson Meany officials said they were hoping to find a single tech tenant to occupy the planned new building.
“Location criteria for office has changed dramatically in the last couple of years as companies are becoming aware of the benefits of an urban environment,” said Tom Sullivan, a partner with Wilson Meany Sullivan, at the time. “When we think about Silicon Valley, there are very few places that offer that kind of setting. Santana Row is one of a very small number, and one of the nicest.”
Oliverio said the construction of new office parks being built north of San Jose has “impeded the natural migration to the south that used to happen” as startups outgrew their space.
“With Santana Row in the picture, this makes sense,” he said. “If a company is concerned about brand and they have their brand on a building in Santana Row, a lot of people are going to see it. It gives Santana Row the opportunity to be a premier office location not just an entertainment complex.”
Santana Row’s amenities include 20 restaurants, Club One Fitness Center, two parks, two plazas, Hotel Valencia, 403 rental apartments, 219 residential condominiums and nine spas and salons.
The mixed-use development also already has 105,000 square feet of office, which is 100 percent leased.