South Tower of the Signia by Hilton resort at 170 South Market Road in downtown San Jose.
(George Avalos/Bay Space Information Group)
SAN JOSE — The potential buy of one of many two landmark towers of the Signia by Hilton San Jose would possibly present a giant enhance to the native economic system by bringing extra guests to downtown San Jose, specialists say.
One of many two towers of the 805-room Signia, a double high-rise that previously housed the Fairmont Resort within the metropolis’s downtown district, is being supplied on the market, in line with the resort’s property proprietor Sam Hirbod and a advertising brochure by JLL, a industrial actual property agency.
The 264-room southern resort tower is being supplied on the market, with a doable conversion to company or quasi-residential stays that might be of longer period than a standard resort room.
The 541-room northern tower, the place the present resort foyer, eating places, health middle, swimming pool, massive and small assembly areas and different facilities are positioned, isn’t up on the market.
The north high-rise shall be retained by Hirbod’s possession group as a standard resort working beneath the high-profile Signia by Hilton model.
Diversification of makes use of between the 2 towers is sensible, mentioned Alex Stettinski, chief government officer of the San Jose Downtown Affiliation.
“There’s a significantly better probability to fill the north tower with resort visitors whereas the south tower is crammed with long-term keep tenants,” Stettinski mentioned.
A rise of visitors or tenants on the property might bolster downtown San Jose’s financial fortunes.
“In principle, extra resort visitors and different forms of tenants staying within the south tower would carry extra individuals to the realm, which helps the downtown,” mentioned Mark Ritchie, president of Ritchie Business, an actual property agency.
Plus, long-term tenants within the southern tower would probably profit from the options within the north high-rise.
“Though not a part of the providing, the North Tower supplies an distinctive and added amenity package deal that can be utilized for the residents and levered by the homeowners of the South Tower,” JLL acknowledged in its advertising package deal.
JLL industrial actual property brokers Matt Kroger, Brandon Geraldo, Ryan Wagner, Max Machiorlette, Melvin Chu, Charles Halladay and Mike Huth are dealing with the efforts to promote the southern tower.
Within the wake of the coronavirus pandemic, wide-ranging enterprise shutdowns and journey restrictions wrecked the lodging sector within the Bay Space and worldwide.
The resort enterprise has begun to rebound, though enterprise journey has lagged the restoration of lodges in vacation spot markets such because the Wine Nation and Monterey Bay area. Markets equivalent to San Francisco, Oakland and downtown San Jose have rebounded at a extra sluggish tempo.
Nevertheless, the longer-term lodging market has begun to submit a extra sturdy efficiency, which might current a possibility for brand spanking new sorts of visitor stays within the southern tower.
“Possession accomplished over $12 million in renovation enhancements in 2018, leading to a one-of-a-kind trophy asset uniquely positioned for a variety of residential makes use of,” JLL mentioned within the gross sales brochure.
The rooms within the southern tower could be accessible in a various assortment of classes, in line with the JLL market package deal.
“With 13 tales of luxurious design and expansive suites, which vary from 450 to 1,350 sq. toes, the South Tower supplies numerous funding approaches and adaptability in a major downtown San Jose location,” JLL acknowledged within the brochure.
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