Urban Catalyst Acquires Key Downtown: Urban Catalyst, a local developer, has acquired a parking lot in Downtown San Jose for $3.3 million, a key piece of land needed for the construction of two apartment towers near City Hall. The 26-slot parking lot, located at 60 North Third Street and previously owned by Town Park Towers, is the final parcel required for Urban Catalyst’s Icon office and Echo apartment project.
The Icon/Echo project, valued at $600 million, gained approval for a 24-story, 525,000-square-foot office building and a 27-story, 415-unit apartment highrise on 2.1 acres. However, due to a lack of demand for office space, Urban Catalyst is considering transforming the Icon offices into a 22-story, 650-unit apartment building.
With the acquisition of the parking lot, Urban Catalyst now possesses four contiguous parcels along North Fourth Street, making room for the planned development. The Icon and Echo Towers, designed by WRNS Studios, feature distinctive designs with offices featuring floor-to-ceiling windows and apartments incorporating vertical window panels.
Notably, rising interest rates and escalating construction and labor costs have slowed home building in the Bay Area, including Silicon Valley. The multifamily development market has faced challenges, with no market-rate apartment projects breaking ground in Silicon Valley in the first half of the year, according to CoStar. Experts at a recent forum expressed uncertainty about when the apartment market would recover.
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