SAN JOSE — Now that the lodging project has won a significant construction loan, a large hotel in downtown San Jose that is set to sprout near Google’s proposed Transit Village is on its way.
Keystone, a 176-room Marriott TowneSuites hotel in total, was built just off the footsteps of the search giant’s new neighborhood on the western edge of downtown San Jose.
Downtown San Jose real estate firm Urban Catalyst is developing an all-suite hotel on the corner of West San Carlos and Josepha streets.
Eric Hayden, Founder and Managing Partner of Urban Catalyst, said:
Poppy Bank provided $48 million to finance the construction of the hotel project, according to documents filed with the Santa Clara County Records Department on January 30.
“The Keystone Project is at the forefront of the future of downtown San Jose development,” said Bob Staedler, principal executive of Silicon Valley Synergy, a land-use consultancy. “Hospitality project funding demonstrates the trust of the investment and banking community in Urban Catalyst and downtown San Jose.”
The eight-storey hotel is built in an Opportunity Zone, offering favorable tax incentives for real estate investors to significantly redevelop properties in such areas. Prior to commencing construction on this project, Urban Catalyst raised significant Opportunity Zone funding from investors.
The entire project costs $100 million, Hayden says. Such amounts typically include construction loans, equity investments, real estate purchases, building materials, labor and other costs, and government fees.
The hotel will also include a rooftop lounge and bar, Hayden said.
The project site is also near the edge of Google’s planned new district known as Downtown West, near the Diridon train station and SAP Center.
“Hotels, especially long-stay hotels, are expected to do very well,” Hayden said.
Google Village will include office buildings, residences, shops, restaurants, accommodations, open spaces, cultural loops and entertainment hubs. The search giant plans to employ up to 25,000 people in the new neighborhood upon full construction.
“Poppy Bank feels about downtown the same way we do,” Hayden said. “Downtown San Jose is Silicon Valley’s only true urban environment. It’s the most logical location for an infill development.”