San Jose Landmark Lands $74M for Resi Conversion
The century-old tower has been vacant since 2017.
The Bank of Italy tower, a 13-story historic office property in San Jose, Calif., secured $74.1 million in financing for an office-to-residential conversion. A joint venture between Westbank and Urban Community owns the asset, according to Yardi Matrix.
The funds will help convert the decades-old landmark into a 109-unit market-rate, mixed-use community. Deutsche Bank provided the loan in a deal facilitated by Cushman & Wakefield on behalf of Silicon Valley Initiative Partnership.
Developers will use the financing to convert the interior and preserve exterior elements of the building, including the façade and detailing. Apartments will be located on the second through twelfth floors. The entire project will span 126,000 square feet for residential and commercial use.
This announcement comes after San Jose expanded its housing incentive program in February 2026 to include conversion projects. The incentive reduces taxes and fees for these projects to streamline construction.
When completed, the project will have studio, one- and two-bedroom apartments. Shared amenities will include an outdoor terrace, as well as a fitness center and a lounge.
The has been vacant since 2017. In 2021, Westbank received a construction loan totaling $14.4 million from ACORE Capital, according to Yardi Matrix.
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Completed in 1926, the Bank of Italy tower is considered one of San Jose’s earliest skyscrapers. The building was commissioned by Bank of Italy founder Amadeo Pietro Giannini and designed by architect Henry A. Minton. Westbank first submitted conversion permits for the development in 2024.
Located at 12 S. 1st St. in downtown San Jose, the site has access to Interstate 280 and is close to major retailers including Target, Trader Joe’s and Whole Foods. San Jose Mineta International Airport is less than 5 miles away.
Cushman & Wakefield’s Equity, Debt & Structured Finance team of Dave Karson, Chris Moyer, Alex Lapidus and Chris Meloni arranged the financing for the borrowers.
Strong fundamentals support San Jose
Across Silicon Valley, strong multifamily fundamentals are supporting the sector with overall occupancy at 96.5 percent as of December 2025, according to a Yardi Matrix report from March of this year. Investors in the area had their best-performing year, recording $2 billion in transactions. Construction also remained on par with previous years as developers delivered 3,861 units in the same period.
In one of the largest San Jose deals of 2025, Standard Communities, Housing on Merit and Vistria Real Estate purchased the 948-unit Park Kiely from Greystar in September. The joint venture paid $370 million for the community with a $203.5 million note from Freddie Mac.
In October, Hanover Creek Co. broke ground on Coyote Creek Village, a 22-acre, mixed-use community. The first phase of the project has an expected completion date for late 2027. At full build-out, the development will bring 1,140 market-rate units to the area.
