SAN JOSE -- A prominent office tower in this city's downtown has been bought by a veteran developer and an investment partner with robust resources, a signal that investors are bullish on the city's urban core, realty agents and city officials said Thursday.
The 160 West Santa Clara building has been sold for $56.5 million to a group led by developer DiNapoli Capital and investment firm Angelo, Gordon. The 15-story building is located at West Santa Clara Street and San Pedro Street.
"The DiNapoli family has a long history in the South Bay, and it is great for them to be the owners of a Class A office building downtown," said David Bucholtz, a broker with Colliers International. "They are big proponents for
The investment by DiNapoli and Angelo, Gordon could help the downtown area attract more technology companies into that part of San Jose.
"We are starting to see more tech companies exploring their options downtown," said Geoff Hubbard, a broker with commercial realty firm Kidder Mathews. "As Palo Alto, Sunnvyale, Mountain View fill up, San Jose becomes more viable."
Recently, Move.com, Malwarebytes and Kerio Technologies opened offices in downtown San Jose. They are far from alone.
"We have more than 75 tech companies located downtown," said Nanci Klein, deputy director with San Jose's city Economic Development Department.
City officials believe downtown San Jose
"Tech companies are looking at ways to attract young talent," Klein said. "You have restaurants, cultural, entertainment amenities downtown. A lot of young people want to be in a downtown like that." Plus, new high-density housing has helped bring residents to the downtown.
Real estate agents and city officials pointed out that the Caltrain and light rail lines that serve downtown may also be seen as attractive to technology companies. Sunnyvale, Palo Alto and Mountain View have landed major tech leases at a brisk pace in part because companies like their employees to be able to access the rail line.
Downtown San Jose has faced plenty of obstacles in its evolution, and the transformation of the area has been a struggle over the decades. Much of the difficulty stems from the downtown's inability to nurture a viable major retail complex. Malls such as Santana Row, Oakridge, Eastridge and Valley Fair have siphoned off retail activity that might otherwise head downtown.
Despite that, the downtown is making steady progress, said Mark Kuiper, a senior vice president with Colliers.
"The downtown has a nice little buzz to it," Kuiper said. "They don't roll up the sidewalks at 5 p.m. any more and wait until the next morning."
Contact George Avalos at 408-373-3556 or 925-977-8477. Follow him at twitter.com/george_avalos.