Historic Bank of Italy Office in San Jose Poised to Transform into

Plans have emerged to convert the historic Bank of Italy office building in downtown San Jose into a residential space, aiming to capitalize on the increasing demand for housing in the area, according to The Real Deal. Vancouver-based Westbank and San Jose-based Urban Community reportedly put forward the ambitious proposal to turn the iconic Bank of Italy tower at 12 South First Street from offices into living spaces, which could potentially revitalize the city center and address housing shortages in the Bay Area.

Originally designed by Henry Minton in 1926, the 14-story Mediterranean Revival and Beaux-Arts landmark once housed the prestigious Bank of Italy, later rebranded as Bank of America, and is now listed on the National Registry of Historic Places. Westbank and Urban Community, spearheaded by Gary Dillabough and Jeff Arrillaga, bought seven portions of the 100,000-square-foot building back in 2017 for a sum $27 million, initially intending to renovate the office tower as part of a makeover project that was unveiled in November 2020. The project originally included an outdoor staircase, a garden terrace, and even a social club and restaurant.

However, the Bay Area's unstable office market amid the post-pandemic economic recovery has led developers to reconsider their plans, and they are now looking to repurpose the majestic tower for apartments or condominiums, which could prove a better option, according to experts in the real estate sector. Mark Ritchie, president of Ritchie Commercial, stated to the Mercury News that the building's smaller floor plates and separate windows for each cozy office make it ideal for residential conversions, adding that the transformation could be "spectacular."

Industry insiders also emphasized the wider social and economic benefits of the proposed change. Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy, told the newspaper that converting the Bank of Italy tower into residential spaces would introduce more vibrancy to downtown San Jose and potentially reduce office vacancy rates in the process. The influx of new residents might also encourage further development in the area, including the revitalization of the local restaurant, retail, cocktail lounge, and bar scene that suffered heavily during the pandemic.

As part of their broader efforts to create a more dynamic urban environment, Westbank and Urban Community are already working to secure an array of restaurants, bars, and shops for the Fountain Alley building next to the Bank of Italy tower, which has reportedly captured the imagination of the community. Nick Goddard, a senior vice president with Colliers, a commercial real estate firm, remarked that the proposed residential conversion could attract affluent professionals to the area and intensify demand for office space in downtown San Jose as the market eventually recuperates.

While plans for the iconic building's future are still being discussed, the office-to-housing conversion has emerged as a promising solution that could inject new life into the city center and tackle the pressing need for residential spaces in the Bay Area. Meanwhile, local entrepreneurs and businesses are looking forward to the potential changes, hoping that a revitalized historic district can boost economic prospects following the difficulties encountered during the pandemic.