Commercial Real Estate Blog

Over the past five years, a group of developers which included Shapell, Citation, and Keenan have been funding the planning process for Coyote Valley in South San Jose. The Coyote Valley has over the past two decades been considered as a place where companies could build additional campuses, with the latest campus plans belonging to Cisco Systems. Those plans fell apart in 2000, along with another Fremont campus Cisco had planned, after economic conditions changed.

Since then, developers have been funding the planning process to the tune of $17M. Another $2.5M was due to be funded, but in the light of the current housing and economic conditions the project is for now being put on hold because it is not economically viable.

The Coyote Valley plan called for as many as 25,000 housing units along with commercial space for 50,000 jobs. Because the city of San Jose requires that staff time be reimbursed, the developers have been footing much of the bill.

The developers will undoubtedly resurface once housing conditions stabilize, and possibly sooner if a large campus user is able to step up and commit to occupying a large campus in Coyote Valley, but for the time being, either scenario seems to be unlikely anytime soon.

As the city of San Jose gives the go-ahead and developers push on with residential projects in San Jose, Oakland is beginning to see constructions halts and plans being shelved.

The Olson Co. has halted construction on its 252 Unit, 7-Story CityWalk project in Oakland about half-way through construction. According to a BizJournal article, the developer has not been paid and has filed suit.

In San Jose, the Foster Group has put up a six-acre high-density housing site on the market for sale. The site can support in excess of 500 residential units. On the market for less than two-weeks, two dozen buyers have expressed interest.

In addition, Fairfield group has received the cities blessing for approximately 900 residential units across two projects in North San Jose, one at Tasman and Zanker, and the other at Baypointe near Tasman.