Uber co-founder’s new company grabs downtown San Jose historic building

SAN JOSE — A real estate investment group led by two tech
heavyweights, including Uber co-founder Travis Kalanick, has bought
a downtown San Jose historic building that over the decades has
been a boxing gym, Odd Fellow’s hall and a furniture store.

The property purchase suggests a widening group of well-heeled
investors hunger for properties in downtown San Jose amid
Google’s quest for a transit-oriented community near the Diridon
train station of office buildings, shops, restaurants, homes and
open spaces where up to 25,000 people could work, including 15,000
to 20,000 employed by the search giant.

“For decades, downtown San Jose was getting interest mainly
from local investors,” said Mark Ritchie, president of San
Jose-based realty firm Ritchie Commercial. “Now we are seeing a
whole global group of investors who are getting interested in
downtown San Jose.”

The building, with addresses ranging from 82 through 96 E. Santa
Clara Street and next to South Second Street in San Jose, was
bought on Dec. 3 for $7.3 million by an affiliate of City Storage
Systems, Santa Clara County property documents show.

City Storage Systems is a tech-oriented real estate venture that
Kalanick now heads up, according to a March 20 tweet from the Uber
co-founder. Kalanick used a fund he established called 10100 to
purchase what Kalanick stated was a “controlling interest” in
City Storage.

In a followup tweet, Sky Dayton, founder of CloudKitchens, City
Storage Systems, Earthlink, eCompanies and Boingo, which are tech
ventures, stated he was enthusiastic about working with Kalanick on
the new effort.

“Super excited to be working with Travis Kalanick and the team
at City Storage Systems and CloudKitchens building a global network
of tech-enabled real estate,” Dayton tweeted on March 20.

It’s the second time in 2018 that the building has been bought
— and the latest deal points to fast appreciation for downtown
San Jose real estate.

On June 15, Pleasanton-based Leisure Sports paid $6.5 million
for the three-story historic building, with plans to transform the
property into a fitness club. However, soon after that acquisition,
Leisure Sports decided it preferred another downtown San Jose
building just down the street and around the corner.

Ultimately, Leisure Sports, acting through an affiliate called
KSP Holdings, bought the old Roos Atkins building at 2 N. 1st St.,
paying $15.5 million on Oct. 30 for that property. Leisure Sports
intends to open a Club Sport fitness center at the First Street
location.

The arrival of the Kalanick venture at the historic furniture
and Odd Fellows building could bring new kinds of
restaurant-related activities to downtown San Jose, some observers
said.

“It will be extremely exciting to see what the Travis Kalanick
company will do with this property,” said Scott Knies, executive
director of the San Jose Downtown Association.

Source: FS – All – Real Estate News 1
Uber co-founder’s new company grabs downtown San Jose historic building