SAN JOSE — The upcoming shutdown of the Capital Club, a hub for high-level gatherings in San Jose, creates a void for business and political meetings but also presents opportunities in a post-coronavirus era.
Silicon Valley Capital Club, one of the mainstays for business meetings, has decided to close its doors after its New Year’s Eve events on Dec. 31, the private social club told its members through emails this week.
“This really was a go-to place, at least in the pre-COVID era,” said Leah Toeniskoetter, president of the San Jose Chamber of Commerce. “I’m disheartened the Capital Club didn’t return to the center of activity they had after COVID.”
The club is located on the 17th floor of the 50 West highrise at 50 West San Fernando Street in downtown San Jose. It commands spectacular views in all directions of the South Bay.
Through the emails, club officials indicated the coronavirus outbreak unleashed a host of economic maladies that also afflicted the Capital Club.
“This decision was not made lightly and reflects the current circumstances that have affected our operations in the post-COVID era,” Vincent Mauriello, a senior vice president with Invited, owner of the Capital Club, stated in the email.
Silicon Valley Capital Club was founded in 1990 and the closure ends 34 years of offering a place to host business and political meetings, as well as a site for members to drop in throughout the work day.
“We had the Silicon Valley Real Estate Breakfast, we had all of our meetings at the Capital Club except for one,” said Sean Cottle, a real estate attorney and shareholder with Hoge Fenton, a prominent Bay Area law firm. “Now we are not going to have that venue and we will miss it.”
Observers also said the exit of the Capital Club from the local business scene wasn’t a major surprise.
“It’s sad but kind of inevitable,” said Mark Ritchie, president of San Jose-based Ritchie Commercial, a real estate firm. “Other private business clubs have closed. These venues have suffered the loss of the lunch business. You need office workers downtown for restaurants to succeed with their lunch business.”
At present, the lunch business remains brutally weak in downtown San Jose, forcing restaurants to depend on breakfast and dinner in a big way to stay afloat.
“It’s a business model that has come and gone,” said Nick Goddard, a senior vice president with Colliers, a commercial real estate firm. “I was a member for a long time before COVID. After COVID, I didn’t think I was getting any value for my membership.”
Toeniskoetter says she will miss the chamber’s connections with the soon-to-close club.
“We loved our relationship with the Capital Club,” Toeniskoetter said. “They have always welcomed us. It has always been a wonderful venue and space to build events.”
Now, business executives will have to find a new location for the types of gatherings to which they have become accustomed.
“My team and I will have to start looking for a new venue,” Cottle said. “I don’t know of another venue that comes to mind.”
Yet even with the departure of the club, the 50 West office tower is expected to have dining services that will be open to the public on the ground floor.
An urban and chic dining spot envisioned by a top-notch Bay Area chef is slated to replace the empty space formerly occupied by KQED.
Parke Ulrich, of the acclaimed Waterbar and Epic Steak restaurants in San Francisco, will be the executive chef of the new restaurant.
The downtown San Jose dining establishment being prepared by Ulrich will offer lunch, happy hour specialty cocktails and dinner in an indoor and outdoor concept, real estate sources said.
Plus, other dining venues are emerging in downtown San Jose.
“Change is constant,” Goddard said. “There are better dining spots available now. You have Eos and Nyx and you have Rolatti,” he added, referring to some of the newer restaurants in downtown San Jose.
