Japantown apartment project revived as Silicon Valley rental market surges
It’s been some time since I have updated this blog. The various projects that we are watching, have been moving forward – but here’s one that’s been in hiding for a while.
In order for this project to move forward, a large warehouse will have to be bulldozed. It is not, however, unoccupied. Many small homegrown businesses thrive there, including the Bay Area Glass Institute. Where will they go? Will there be room reserved for them somewhere?
The original plan was for a restaurant to be included in this presumably for Gordon Biersch, but the article doesn’t mention this, although it does speak to the agreed-upon park. This will be created out of the Cannery Park’s property plus property from Core’s neighboring Marquis Apartments.
“An 8-acre industrial site in San Jose’s Japantown neighborhood is back in play for apartments, as continued strength in the region’s rental market revives long-dormant plans up and down Silicon Valley.
The owner of the site at 357 E. Taylor St. expects to go into contract soon with a major multifamily developer, said Kevin Perkins, associate principal of Emeryville-based Libitzky Property Companies, which has long owned the property. The land is fully entitled for about 400 residential units.
“The window of opportunity right now is wide open for residential development, and we recognize that,” Perkins said. “We are wanting to hit the window.”
A deal now would come roughly five years after LPC fell out of contract with Trammell Crow Co. on the site during the collapse of the nation’s real estate market. That’s not expected to happen this time around, he said, given that LPC locked down all approvals to build, meaning a deal could close in a short timeframe.
“This is the cycle when this is going to go,” he said. “My guess is within 24 months we’ll see product getting delivered.”
LPC also owns an adjacent 2.67-acre property that is the Gordon Biersch Brewery and headquarters. That property, which is leased long-term to the brewer, will remain unchanged.
As approved, the new project will include three new, five-story buildings, though it’s possible the density will be increased further. The project is designed to preserve and adapt the old Continental Can Co. brick warehouse, which is on the west side of the project site. A 1-acre park will also be built.
The Cannery Park Village project is just the latest sign of activity in the area of Japantown, one of the three remaining historical Japantowns in the country. Projects pending in San Jose’s Japantown include Standard Pacific’s Westmount at 427 E Mission St.; Marquis, a joint venture of Republic Urban Properties and CORE Builders at 817 N. 10th St.; and Ajisai Gardens, a Roem Corp. project at Taylor and North Seventh St.