SAN JOSE — Blocks of empty retail fronts in a prime section of downtown San Jose could morph into lively stretches of restaurants, entertainment venues and shops under a new plan being floated at City Hall.
Real estate firm Hines has filed a proposal for a dramatic revamp of three blocks of mostly vacant commercial spaces at and near 150 South First St. in downtown San Jose.
Paseo Place, as the proposed project is being called, is being crafted to fill the spaces on South First Street between East San Fernando Street and Paseo de San Antonio, on South Second Street between San Fernando and the Paseo, and on the Paseo de San Antonio between First and Second streets.
Hines seeks to “enhance pedestrian engagement, create inviting outdoor dining areas, celebrate technology and innovation, use lighting and identify to enliven the Paseo, and blend modern and historical elements,” according a planning document for the project.
The retail revival would accomplish several goals, according to Hines:
— Transform Paseo de San Antonio into a vibrant new social hub for downtown.
— Attract popular and exciting new food, retail and entertainment concepts.
— Provide a stronger connection between San Jose State University and the greater downtown area.
— Be a catalyst for downtown’s revival.
The site is often referred to as The Pavilion, a reference to a long-vanished shopping center that was there.
“The pavilion has needed this level of upgrade for quite some time,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.
City and business leaders hope San Jose can offer a lively downtown to attract people who will be in the Bay Area for three key sporting events in 2026: the Super Bowl, a segment of the men’s NCAA basketball tournament and several matches of the FIBA World Cup.
“The city of San Jose should fast-track the approval of this for the vibrancy needed to attract the potential 2026 events,” Staedler said.
Hines envisions several ways it can achieve its major goals with Paseo Place, according to city planning files.
“(The project) will maximize connectivity and activate the pedestrian paseo with dynamic storefronts and engaging signage,” Hines stated in its proposal. “(It will) use canopies, trellises, pots, and street furniture to create a comfortable and inviting pedestrian scale.”
Outdoor seating areas will also be a crucial component of the development, Hines stated.
“(The development will) energize the paseo with spacious and flexible outdoor dining zones to bring life to the streets” as well as “define seating areas with attractive railings, planter boxes and lighting elements,” the Hines proposal says.
Hines also intends to craft the development so it can showcase San Jose as an innovation hub, according to planning files.
In 2021, an affiliate of Hines paid $59.6 million for the property, which totals 179,800 square feet, Santa Clara County files show.
The Hines proposal to revamp its ground-floor spaces could be viable, in light of the notable success stories in the immediate vicinity for Eos & Nyx, Scott’s Seafood and Urban Putt, all on or near the Paseo de San Antonio.
“This is exactly the type of investment downtown San Jose needs,” Staedler said.
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