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Downtown San Jose towers development may convert garage into offices


345-unit housing tower within a mixed-use development at 323 Terraine Street in downtown San Jose, concept.
(Studio Gang)

SAN JOSE — The developer of a downtown San Jose housing and office project is pushing ahead with revamped plans that now envision the conversion of a parking garage into an office tower on the prime site.

The proposed development would produce 345 apartments at 323 Terraine Street, according to plans submitted by Westbank, a Canada-based real estate firm with a global reach.

Street-level view of a 345-unit housing tower at 323 Terraine Street in downtown San Jose, concept. (Studio Gang)
Street-level view of a 345-unit housing tower at 323 Terraine Street in downtown San Jose, concept. 

The Terraine project — which has yet to break ground — also would include an option to convert a proposed parking garage on the site into a large office building, according to the revised plans.

The housing portion of the project, located near the corner of Terraine and Bassett streets, would consist of a 17-story housing high-rise, the proposal on file with San Jose city planners shows.

Balconies and apartments in a 345-unit housing tower at 323 Terraine Street in downtown San Jose, concept. (Studio Gang)
Balconies and apartments in a 345-unit housing tower at 323 Terraine Street in downtown San Jose, concept. 

It’s not surprising that a big player such as Westbank is keeping its options open with the downtown San Jose project.

“Flexibility is key to development projects during this challenging cycle,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy. “Large developers have spent a significant amount of time and money in planning these projects.”

In 2021, real estate allies Westbank and local developer Gary Dillabough teamed up to buy the site in the North San Pedro district, paying $11.4 million for the property.

The seller was Z&L Properties, a China-based real estate firm whose efforts to develop and land tenants for a series of housing towers in downtown San Jose have largely flopped.

The revamped Westbank proposal for the Terraine project suggests that the first phase of the development would produce a housing tower and a nine-story parking garage with 621 spaces.

At some point, depending on market conditions that presumably would differ greatly from the current murky outlook for the Bay Area office market, the parking garage would be converted into an office building.



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