Riverpark Tower II is filling up

Guest blogpost by Rick Jensen
San Jose Downtown Association

The rapidly completed full occupancy of River Park Tower II at 300 Park Avenue is another example of the uptick in business interest in Downtown San Jose, and its appeal has been enhanced by being close to the planned Diridon Station area development, as well as offering a serene, tree-lined plaza along the Guadalupe River.

In August, tech company Sage Intacct expanded its River Park Tower II lease by taking over another floor (about 20,000 square feet) for its home office.  Sage Intacct, a growing cloud accounting software and financial management business, now occupies six floors of River Park II. Enterprise storage company Cohesity moved into River Park II in July 2017, and announced in January 2019 that it would grow from 34,000 square feet to five floors – 99,000 square feet. Okta, which provides cloud software that helps companies manage and secure user authentication, also grew into River Park II, doubling its space to two floors (40,000 square feet) in July 2018.

River Park II, owned by Divco West and Rockpoint Group since 2017, provides about 300,000 square feet of commercial space in 16 stories. It was built in 2009 and sat vacant for more than five years until Pan Pacific Bank of Fremont opened on the ground floor. The California Bank of Commerce acquired Pan Pacific and is still anchors the ground floor. Other tenants with a full floor in River Park II are Bitmain semiconductor company and DeVero home health software provider.

RiverPark Tower II, on left.

A twin building, River Park I, was built in 1987 and boasts WeWork, Acer, three more floors of Cohesity, Nokia and a collection of attorneys and accounting firms.

Investors including Urban Community, Jay Paul Co., Boston Properties and Valley Oak Partners/TMG Partners have taken note of the rapid occupancy, the simultaneous growth of the mid-sized tech tenant companies, and the lay of the Silicon Valley landscape and saw opportunity.

“Downtown San Jose is the next frontier in Silicon Valley,” said Matt Lituchy, chief investment officer for Jay Paul Co.

Notable projects in the downtown development pipeline include:

  • Jay Paul Co. is moving quickly to build an 800,000-square-foot building at 200 Park Ave., across from CityView Plaza, which Jay Paul Co. also plans to totally redevelop.
  • Urban Community has two office projects in the works at Museum Place and 255 W. Julian with more than 750,000 square feet.
  • Boston Properties has joined TMG and Valley Oak to start construction on a 1 million-square-foot campus on Autumn Parkway on the west side of downtown.
  • Boston Properties has also put a 1.8 million-square-foot development into the permitting process on its long-held Almaden Boulevard site.
  • Adobe has started construction on a fourth headquarters tower of almost 700,000 square feet that would welcome an additional 4,000 employees – and Adobe was the first company to opt for a downtown corporate “campus” some 25 years ago.
  • And of course, we are looking at the development by Google over the next decade or so, for a mixed-use project that includes up to 10 million square feet of office space, housing, retail, entertainment and public space around Diridon Station.