Diridon Station Gains New Investment
Ever since Google announced plans to invest heavily in the area around Diridon Station, other developers have been scrambling to get in on the action. Since that announcement, Google has been gobbling up properties in the vicinity for Diridon, to the tune of about $350 million, to make way for the implementation of its mixed-use transit village. Urban Catalyst, an Opportunity Zone investment fund, is the most recent firm to enter the fray.
The San Jose-based company recently purchased two properties on West San Carlos Street near Josefa Street. In close proximity to Didiron, Urban Catalyst plans to add a 170-room hotel to the downtown redevelopment.
“Transit-oriented development, like this hotel, allows us to be part of building a vibrant, livable and sustainable community,” said Urban Catalyst Founder Erik Hayden in a statement, as reported by CoStar. “Through these property purchases, we are making bold moves to revitalize the area by filling the demand for downtown hotels offering walkability and easy access to mass transit.”
The San Jose downtown area is one of thousands of Opportunity Zones throughout the U.S., which were created with the 2018 tax reform, in order to encourage development in economically challenged areas. San Jose is one of the few communities in the Silicon Valley area with available qualified OZs. Investors receive tax benefits in exchange for their long-term investment in qualified areas.
It’s expected to take 10-15 years to fully realize Google’s strategy for the Didiron Station area, but when complete, San Jose could see a bump of an additional 6-8 million square feet of office, retail, restaurant, and residential space, plus complementary developments that have surged in recent months, similar to Urban Catalyst.
Keystone Commercial Brokerage serves the needs of commercial real estate investors in the Santa Clara and San Mateo counties, specializing in commercial property, multi-unit residential, office space, and multi-use property. Paul Phangureh has over 16 years of experience in buying and selling in the Santa Clara and San Mateo County areas. Contact Paul at 650-924-2544, or email at [email protected]