SAN JOSE — A new housing tower in San Jose could help fuel a fledgling rebound for the city’s urban core by bringing hundreds of residents and greater vibrancy to the downtown.
The Fay, a 336-unit, 23-story housing tower at 10 East Reed Street near the busy confluence of South Market Street and South First Street, is preparing to welcome its first tenants this weekend.
Balcony of one of the residences in The Fay, a 23-story, 336-unit apartment tower at 10 East Reed Street in downtown San Jose. (George Avalos/Bay Area News Group)
Fitness center in The Fay, a 23-story, 336-unit apartment tower at 10 East Reed Street in downtown San Jose. (George Avalos/Bay Area News Group)
The Fay, a 23-story housing tower with 336 apartments at 10 East Reed Street in downtown San Jose. (George Avalos/Bay Area News Group)
New housing towers and the residents they bring to downtown San Jose are deemed to be big factors in how the city’s urban heart will rebound in the uncertain years following the coronavirus outbreak.
“A big part of our success has to be residential density,” San Jose Mayor Matt Mahan said during an event to officially mark the opening of the The Fay apartment tower, which is perched on one main gateways into downtown San Jose. “This is the first residential highrise building we’ve seen in a few years and it certainly is not the last.”
One of the residences in The Fay, a 23-story, 336-unit housing tower at 10 East Reed Street in downtown San Jose. (George Avalos/Bay Area News Group)
Rooftop pool at The Fay, a 23-story, 336-unit apartment tower at 10 East Reed Street in downtown San Jose. (George Avalos/Bay Area News Group)
The first residents could start moving in Saturday, according to David Hunt, chief development officer with Morro, a real estate firm that developed The Fay.
“Five years ago, we made the strategic decision to come to downtown San Jose,” Hunt said. “This is an exciting place to be.”
The Fay is located in the lively, hip and trendy SoFA district, a hub for live entertainment, restaurants, bars, theaters and arts.
“This is an exceptional building,” Mayor Manan said. “The units are gorgeous, the amenities are incredible, the views are stunning. The Fay is going to have a huge impact on the community.”
The new tower is opening at a time when downtown San Jose is battling a brutal slump in its office market, resulting in a lack of office workers in the city’s central business district.
With many office workers no longer present in downtown San Jose in the wake of the coronavirus, business and political leaders have pivoted to more housing development as a way to encourage more vibrancy.
Here are the starting monthly rental rates for The Fay, according to the housing tower’s website.
— Studios,$2,750
— One-bedroom units, $2,880
— Premium one-bedroom units, $3,530
— Two-bedroom units, $4,330
“We’re seeing a lot of enthusiasm from tenants and people who are interested in living here,” Hunt said. “We are very optimistic.”
The housing tower is offering an “early bird concession” consisting of eight weeks of free rent for people who book apartments now.
The Fay, a 336-unit, 23-story apartment tower at 10 East Reed Street in downtown San Jose. (George Avalos/Bay Area News Group)
The Fay’s developer also decided to place all the amenities on the top level of the building, rather than devote the 23rd floor to a penthouse residence.
“This way, every resident will be able to enjoy all the building’s amenities,” Hunt said.
The top floor features a rooftop pool, fitness center and clubhouse lounge where residents can hold meetings.
The housing tower also includes 5,500 square feet of ground-floor retail spaces, according to Geri Wong, a senior managing director with Newmark, a commercial real estate firm.
Wong is seeking occupants for the retail space, which can be divided up for multiple merchants.
“We’re already seeing interest from possible retailer tenants,” Wong said. “We would like to see a food and beverage option for the corner space.”
In addition to the amenities in the building, local officials believe the SoFA district will offer even more enticements for residents at The Fay.
“SoFA is on the rise,” said Nate LeBlanc, business development manager with the San Jose Downtown Association.
Mayor Mahan is convinced the opening of The Fay is another sign of a turnaround in downtown San Jose.
“We have had the second-fastest rebounding downtown in the country, second only to Las Vegas, when you look at foot traffic,” Mahan said. “People are coming back to the downtown, nights and weekends.”
The big challenge is finding a way to create more activity during the daytime. Even with this shortcoming, Mahan sees positive trends for downtown San Jose.
“It’s vibrant,” Mahan said. “We’ve got more and more restaurants and bars opening up. We have the theater district here. Downtown is on the rise.”
