SAN JOSE — A wide-ranging revamp could transform a big-box mall in San Jose into what could become another Santana Row, experts say.
The vast redevelopment effort would focus on two sites at the intersection of Saratoga Avenue, Lawrence Expressway and Quito Road: El Paseo de Saratoga, a prominent San Jose shopping center, and a much smaller property across the street, city documents show.
On the two parcels, a huge new complex of offices, shops, restaurants and homes is being planned, according to a proposal by project builder Sand Hill Property Co., which is headed by veteran developer Peter Pau.
“It looks like Peter Pau wants to turn El Paseo into Santana Row one section at a time,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.
Here’s what’s featured in a proposal for the redevelopment of the two sites, El Paseo de Saratoga and 1777 Saratoga Ave. across the street from the shopping center:
— 1,100 residential units, including 820 apartments on the El Paseo site and 280 dwellings on the smaller site.
— 165,000 square feet of commercial space, consisting of 159,000 square feet on the El Paseo property and 6,000 square feet on the 1777 Saratoga parcel.
“It’s impressive what Peter Pau is trying to do,” Staedler said. “He’s trying to take an existing shopping center and turn it into a lifestyle center.”
Even before the coronavirus erupted worldwide, conventional shopping centers, especially those with big-box retailers, had begun to flounder. The increased popularity of e-commerce prompted more consumers to shop online instead of in-person store visits.
The onset of the virus chased away even more shoppers from malls that were shuttered as a result of wide-ranging business shutdowns to combat the spread of the deadly bug.
Commercial centers such as Santana Row and Westfield Valley Fair have managed to prosper and have regained the vast majority of their pre-coronavirus foot traffic. That’s because these centers offer active experiences that go beyond simply shopping in a store to peruse and buy merchandise.
“It does seem there is a place for highly specialized, high-end retail,” said Mark Ritchie, president of real estate firm Ritchie Commercial. “The only kind of retail that is doing well now is the Santana Row-style high-end retail and restaurant.”
The project, if approved and built, wouldn’t replace the entire El Paseo de Saratoga center and would occur only on a 10.7-acre section of the retail hub, according to city documents detailing the potential impact of the project now being circulated for public review.
Two possible redevelopment options are being circulated in the planning document. One option would include a school and the other option would exclude the school.
The option without the school would contain 1,100 homes and 165,000 square feet of commercial space. The option with the school would feature fewer homes and less commercial space.
The movie theaters and some of the existing retail spaces would be retained in the first phase of the site’s redevelopment.
“By having the housing attached to the development, that will help the daytime and nighttime activity,” Staedler said. “The new center will have the energy of Santana Row and an area with a lot of spending power.”
The proposed revamp of El Paseo de Saratoga could usher in dramatic changes to this section of San Jose.
The vast proposal also is in keeping with the grand projects envisioned by Sand Hill Property’s top executive, who has also proposed a sweeping redevelopment of the aging Vallco Mall in Cupertino.
“Peter Pau always has bold ideas, he always has bold strokes with his projects,” Ritchie said.
