SAN JOSE — The 166-unit development near downtown San Jose took a giant leap forward in a series of real estate deals, allowing two real estate companies to build projects in locations of their choice.
Pacific Cos. and Malacor Development worked together to develop the project at 802 S. First St. just south of the city’s downtown district, according to files filed with Santa Clara County and San Jose city officials.
The land under the project site on the corner of South First and East Virginia streets in San Jose is now owned by Martha Gardens, a local family affiliate led by Jim D’Amico and Marlene D’Amico.
A family affiliate leased the land to Pacific West Communities, a division of Pacific Corporation, a leading Idaho-based residential developer. Maracor Development is also working on this project.
According to county documents filed Oct. 11, the Pacific West community paid $10.5 million through a lease on land currently owned by the homebuilder. The real estate transaction was arranged through Borelli Investment Co., a San Jose-based real estate firm. .
The Development Coalition owns the multifamily buildings under the terms of the real estate transaction.
“This is a great location,” said Ralph Borelli, President of Borelli Corporation.
According to City of San Jose records, the development plans will include 166 multifamily housing units on the 1.2-acre project site.
According to the city planning report, “The planned site is currently being developed with a vacant commercial building with above-ground parking and one- and two-story warehouse buildings used for storage.
The commercial building has included Wheelworks stores for many years.
“The subject complex site has been designated as transit housing,” the planning document said. “This is a prime designation for a new high-density mixed-use residential development site located in close proximity to transportation, jobs, amenities and services.”
The proposed development is also expected to include 1,500 square feet of ground floor retail.
The timeline for project initiation and completion was not immediately apparent.
“We are seeing a real convergence of development activities in this area,” said Borrelli.