San Jose — One of downtown San Jose’s landmark properties is in the For Sale Block, a real estate initiative that may provide clues about the strength (or weakness) of the economy in the area.
According to marketing brochures and sales packets obtained by the news agency, Hotel De Anza is for sale at an unknown price range.
“This is a rare opportunity to acquire an operationally flexible and historic property with substantial benefits,” the sales brochure states.
Newmark, a commercial real estate company, leads its sales activities through its Accommodation Capital Markets Group, based in Manhattan, New York City.
The seller is asking for $30 million for a 100-room hotel, which equates to approximately $300,000 per room.
It wasn’t immediately clear how some prospective customers would react to the reported price.
The current owner, an affiliate managed by Los Angeles-based real estate firm Lowe Enterprises, bought the hotel for $20.4 million in 2015, according to a property database. As of mid-2022, the hotel was worth his $22.5 million, documents in the Santa Clara County Assessor’s Office files show.
Future new owners of the hotel could experience considerable benefits from the accommodation, the sales packet said. It is
“The San Jose market continues to experience new developmental tailwinds and significant growth due to the growing presence of the world’s leading technology companies,” the marketing paper states.
A few blocks west is Google’s proposed mixed-use district footprint, where the search giant could employ up to 25,000 people. Google aims to develop office buildings, residences, shops, restaurants, hotel facilities and entertainment hubs near Diridon Station and SAP Center.
Right next to the hotel, Adobe has completed construction of a new skyscraper on West San Fernando Street. This will significantly expand the size of his existing three headquarters campuses.
Adobe currently employs approximately 3,800 people in downtown San Jose. Adobe says the new skyscraper will accommodate about 3,000 people. The expansion to the North Tower will bring the company’s downtown workforce to a total of 6,800, an approximately 79% increase in San Jose’s urban workforce.
Opened 90 years ago during the Great Depression, the 10-story De Anza Hotel was listed on the National Register of Historic Places in 1982 and is one of San Jose’s few Zigzag Modern (Art Deco) buildings.
“The iconic Art Deco property is currently positioned as the only boutique lifestyle property in the market, offering operational flexibility and a rare opportunity to acquire a historic property with significant benefits.” Newmark said in a marketing brochure.
Hotel de Anza is on the market at a time of great uncertainty in the accommodation and travel sectors due to the economic hit caused by the coronavirus.
“We’ve just gone through a two-and-a-half-year plague, and we couldn’t have picked a worse real estate asset class than hotels,” said Mark Richie, president of real estate firm Richie Commercial. can only go up.”
After the spread of the new coronavirus infection, some industries are recovering well, but the accommodation and travel industries continue to struggle.
“Hospitality will take a little longer to get closer to its pre-pandemic state,” said Bob Staedler, principal executive at Silicon Valley Synergy, a land-use and planning consultancy.
The economic impact of the coronavirus has hampered markets such as downtown San Jose and San Francisco, which rely heavily on business travel and convention gatherings.
Still, in the view of real estate experts, Hotel de Anza may be poised to enjoy a recovery under proper ownership.
“It’s a beautiful building and well laid out,” says Staedler. “It will be a great buy for those who want long-term wealth.”
Around 1929, architect HH Weeks designed a 144-room hotel, which was built on the site by legendary architect Carl Swenson. The hotel opened in his 1931, and from the 1930s through his 1960s, the Hotel de Anza was one of the Bay Area’s most popular places he considered a cool joint to see and be seen. rice field.
But by the 1970s, the Hotel de Anza was in disrepair, and the now-defunct San Jose Redevelopment Authority had to spearhead a rebuilding of the building and rescue the tower from a wrecking ball. In 1989, the city commissioned Carl Swenson’s grandson, Barry Swenson, to renovate the hotel.
“The hotel has lived a strong life before, and will continue to do so in the future,” Richie said. “It’s a beautiful property.”