BY Lisa Brown
2 West Santa Clara was built in 1910 as the headquarters of First National Bank and most recently was the offices of lumber company, Pacific States Industries, with a Walgreens on the ground floor. In 2017, DivcoWest acquired the value-add investment in the part of downtown where Google has accumulated a large number of properties.
Later that year, DivcoWest began a renovation of the building, which will be ready for occupancy in the first quarter. The renovation includes updating the facade and office interiors to appeal to a more creative tenancy.
“DivcoWestrs comprehensive modernization program has transformed 2 West Santa Clara into an unmatched creative office location in the heart of downtown San Jose,” Jeff Arrillaga of Newmark Knight Frank tells GlobeSt.com.
The 100,000-square-foot building has been a single-tenant location in the past, and possibly could be again. However, the opening up of each of the 10 floors and connecting of the first and second mezzanine floors means that the property should appeal to a broad range of tenants including smaller users looking for a full floor of space. Floorplates run from about 7,000 square feet to 12,000 square feet, and the first and second floors together could provide up to 21,500 square feet if taken together and interconnected. The renovation opened up the space to provide higher ceilings, more natural light and minimal column lines.
One of the highlights of the renovation is the private roof deck located on the fifth floor, which creates an outdoor workkommunity space with views of the hills and downtown.
Another key selling point of the building is its location near many existing planned major public transit options. It sits next to a Valley Transit Authority light rail station, allowing quick access to the airport, Diridon Station (the epicenter of Googlers proposed campus) and surrounding areas including Mountain View. It is also near the proposed site of the future BART station in downtown San Jose. And, it is surrounded by retail, restaurant, hotel and other amenities including the San Jose Art Museum two blocks away.
The brokers marketing the space are Arrillaga and Michael Saign of Newmark Knight Frank.
“The combination of customizable, creative interiors and a private roof deck are two of the project features we have received the most excitement about to date,” Saign tells GlobeSt.com.
Office activity in Silicon Valley remained strong in the third quarter of 2019, posting positive net absorption for the eighth quarter in a row and bringing the year-to-date total absorption to just under 1 million square feet, according to a third quarter office report by Newmark Knight Frank. The office market showed a slight slowdown with net absorption of 129,780 square feet compared with the second quarters 461,828 square feet. Moreover, the total square feet leased increased by more than 1.8 million to 4.45 million square feet, says NKF.