One of downtown San Jose’s historic properties, the so-called Saratoga Capital building, traded hands Friday, as seller Lift Partners revealed a spate of flashy new retail tenants gearing up to move in.
The storied property at 52-78 E. Santa Clara St. traded hands Friday afternoon for $14 million, making it the third and final property sale from a portfolio of historic downtown San Jose properties that Lift, along with Westbrook Partners, picked up in 2016.
Friday's transaction for the 1880s-era building works out to about $451 per square foot for the two-story, 31,027-square-foot property. Charlie Strouss and Will Schmidt of CBRE represented the buyer and Lift was unrepresented in the sale.
Chris Freise, managing partner and co-founder at Lift Partners — an investor and developer who has become one of downtown San Jose’s most enthusiastic boosters — told the Business Journal that big things are slated for the property he’s just handed over.
“We’ve round-tripped all of our deals in downtown today,” Freise said. “I think we have brought in some fun tenants and created some positive change.”
Buyer US Real Estate Investments, LLC declined to comment for this story.
The Saratoga Capital building deal also includes the adjacent former Voodoo Lounge property, where Freise said a “well-known restaurant out of Oakland,” is negotiating a lease for the space, hinting that more information is likely to emerge soon.
Meanwhile, the Saratoga Capital building has locked in a lease for Miniboss, a new arcade bar in the former Toons Piano Bar, outfitted with arcade cabinets, alongside SuperGood, a new Southeast Asian eatery. The Business Journal this week got a peek at new renderings of the bar-arcade mashup. SuperGood, a new Southeast Asian eatery, is slated to open next month at the so-called Saratoga Capital building at 52 E. Santa Clara St. in downtown San Jose.
The concept is the newest potential downtown hotspot dreamed up by the owners of craft brew pub Original Gravity Public House and Paper Plane, an upscale yet decidedly hip bar and restaurant, both of which sit along South First Street in downtown.
Miniboss and Supergood will both open next month in a shared “warm-industrial” space designed by Gensler on the ground-level of the Saratoga Capital building. Mark Ritchie of Ritchie Commercial and Kyle Goni of Lockehouse Retail Group arranged the 5,528-square-foot retail lease.
No tenant currently occupies the second-floor offices space in the building.
Unwinding the ‘Saratoga Capital portfolio’
San Francisco-based Lift and New York City-based Westbrook initially bought the property at the corner of South Second and East Santa Clara streets along with two other historic downtown properties from Saratoga Capital in August 2016 for a combined $33.5 million.
Also in that portfolio: The 1928 building that has long been home to The Blue Chip Lounge at 325 S. First St. and the 101,000-square-foot former JCPenney building at 1 W. Santa Clara St., which was purchased by developer Jay Paul Co. earlier this year.
1 W. Santa Clara St in San Jose
Renderings of the building at 1 W. Santa Clara St. in San Jose's commercial core give some insight into what the project could look like when complete. The renderings were commissioned by former property owner, Lift Partners and Westbrook Partners, which had been revamping the building for more… more
Lift and Westbrook have spent the past two years revamping the properties and selling them off for a combined $72.5 million in three transactions, Freise said.
Those transactions were arranged by a slew of brokers from several local brokerages, including CBRE’s Jeff Houston, Will Schmidt, Scott Prosser and Vince Machado, Newmark Knight Frank’s Joe Kelly, Savills Studley’s Mike Mordaunt, Cushman & Wakefield’s Erik Hallgrimson, and JLL’s Mark Bodie and Toss Valentine.
325 S 1st St. in San Jose SoFA district
The SoFA district building along South First Street is the longtime home to The Blue Chip Lounge.
Before the sale to Jay Paul, Lift inked a lease with Blue Bottle Coffee in the building at 1 W. Santa Clara St. That celebrated announcement marks not only the first South Bay location for the popular third-wave coffee shop, but new momentum in a larger effort to bring more “authentic retail,” to San Jose’s downtown core, Freise said.
“There's a lot of business owners and property owners in downtown that continue to struggle with that,” he said. “What we've tried to do is show that it's possible, that you can do it.”