In an indication of ongoing interest in the urban core of the Bay Area’s largest city, a veteran developer has bought the downtown San Jose building that was the old Metropole Hotel site.
SAN JOSE — A veteran developer has bought the downtown San Jose building that was the old Metropole Hotel site, an indication of ongoing interest in the urban core of the Bay Area’s largest city.
An affiliate of Valley Oak Partners has bought the two-story office building at 35 S. Market St., which also fronts on Post and South San Pedro streets.
The new owners intend to market the building to technology startups, or even larger tech companies such as Amazon’s Lab 126, that already have a presence in downtown San Jose and might want more elbow room.
The purchase also is a sign that investors hunger for properties and projects in downtown San Jose. Interest and activity in the city’s city center has surged lately after Google and city officials revealed in June that the search giant and its development ally, Trammell Crow, are interested in building a transit-oriented campus for Google near the Diridon train station and the SAP entertainment complex.
“We like the character of these old buildings and we have rehabbed several buildings,” said Steve Fisher, a principal executive with San Jose-based Valley Oak Partners.
VOP 35 South Market paid $8.5 million on Sept. 13 for the office building, according to Santa Clara County official documents.
In a separate commercial realty effort, Valley Oak is a partner with San Francisco-based developer TMG Partners. TMG and Valley Oak intend to build a million-square-foot transit-oriented campus along the banks of the Guadalupe River.
The TMG and Valley Oak complex is adjacent to the areas of interest where Google and Trammell Crow have been buying properties in aging industrial district for a downtown San Jose project that some have dubbed Google Village.
“Valley Oak’s executives are very clever, they are a trio of experienced brokers,” said Mark Ritchie, president of San Jose-based Ritchie Development. “They are buying very interesting properties and getting involved in key development projects.”