SAN JOSE – Two key properties across the street from a large mall in San Jose are for sale and could become the site of a new office tower, medical home or hotel.
The sites are located at 2812 and 2850 Stevens Creek Blvd. in San Jose and are opposite the Westfield Valley Fair Mall and down the street from Santana Row.
The 2850 Stevens Creek facility has already been approved for the development of an 11-storey hotel and is now occupied by a petrol station.
In October 2021, the property fell into default on its mortgage and was facing foreclosure. It was even planned to be sold at auction to the one who offered the highest price.
However, the property owner, a subsidiary run by Adil Mahmoud, CEO of Villa Developers & Investment, cured the default and saved the property from foreclosure. Mahmoud’s group still owns the site.
David Thaksin, a partner at Meacham / Oppenheimer, a commercial real estate company, came up with the idea of trying to sell both the 2850 Stevens Creek and the adjacent 2812 Stevens Creek in a package deal.
Together, the sites total 1.3 acres, according to Taxin. If the properties were to be acquired by the same buyer, high-density construction of the newly created site could be possible.
“We went to the neighbor and offered both plots as one development site,” Thaksin said.
The adjacent site is owned by a branch run by the Sal Cala family, a real estate investment group.
“The packages together would give you a property where you could cross at least 10 floors with a building,” Thaksin said.
The combined site will have a high-profile location in front of Strevens Creek between South Monroe Street and South Clover Avenue.
“The parcels together give us a much wider audience,” Thaksin said.
San Jose City Authorities are looking for a higher density along the section of Stevens Creek Boulevard between Interstate 880 and Winchester Boulevard.
In the package deal scenario, the combined site will be offered for sale at a price of $ 25 million, according to Taxin.
Property 2850, where the hotel is approved, if sold separately, will be offered for $ 12.8 million. In recent years, Mahmoud has tried to sell the hotel for about $ 20 million.
However, the outbreak of the coronavirus has devastated the accommodation and travel sector. The economic turmoil of the deadly bug has in many cases undermined the value of existing hotels. This dynamic has made the development of new hotels less feasible.
“We are talking to some well-known medical tenants to see if anyone is interested or needs something in this area,” Thaksin said.
In addition, the site can be viable as an office tower for a technology company.
“A large office building would be similar to what is done in Santana Row with a large technology tenant,” Thaksin said.