SAN JOSE — A brand new residential tower in San Jose could help revitalize town's urban core by bringing a whole lot of residents and more vibrancy to downtown, officials said Thursday.
The Fay is a 23-story, 336-unit residential tower situated at 10 East Reed St. near the intersection of South Market Street and South First Street. The first residents could move on this weekend, based on David Hunt, chief development officer at Morro, an actual estate company that developed the positioning.
“Five years ago we made the strategic decision to move to downtown San Jose,” Hunt said. “This is an exciting place.”
Officials hope residents will help revitalize downtown after years of uncertainty following the COVID outbreak.
“A big part of our success has to be residential density,” San Jose Mayor Matt Mahan said during an event Thursday marking the official opening of The Fay. “This is the first residential high-rise we’ve seen in a few years and it certainly won’t be the last.”
The Fay is situated in the stylish SoFA district, a middle for live entertainment, restaurants, bars, theater and art.
“This is an extraordinary building,” Mahan said. “The units are beautiful, the amenities are incredible, the views are breathtaking. The Fay will have a huge impact on the community.”
Here are the starting monthly rental rates for The Fay, based on the residential 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 excitement from renters and people interested in living here,” Hunt said. “We are very optimistic.”
The residential tower is offering eight weeks of free rent as an “early bird concession” for many who book an apartment now. The developer of The Fay also selected to accommodate all amenities on the highest level of the constructing relatively than devoting the twenty third floor to a penthouse residence.
“This allows every resident to have access to all of the building’s amenities,” Hunt said.
The top floor incorporates a rooftop pool, a fitness center and a clubhouse lounge where residents can hold meetings. According to Geri Wong, senior managing director at Newmark, a industrial real estate firm, the residential tower includes 5,500 square feet of ground-floor retail space.
Wong is searching for tenants for the retail space, which will be divided up for multiple retailers.
“We are already seeing interest from potential retail tenants,” Wong said. “We would like to see a food and beverage option for the corner area.”
In addition to the amenities within the constructing, local officials consider the SoFA district will offer much more enticements to residents of The Fay.
“SoFA is on the rise,” said Nate LeBlanc, business development manager on the San Jose Downtown Association.
Mayor Mahan believes the opening of The Fay is one other sign of change in downtown San Jose.
“We had the second fastest downtown recovery in the country, just behind Las Vegas when you look at foot traffic,” Mahan said. “People are returning to the city center at night and on weekends.”
The big challenge is finding a technique to create more activity through the day. The latest tower opens at a time when downtown San Jose is grappling with a declining office market, resulting in a shortage of office staff in town's central business district. Despite this shortcoming, Mahan sees positive trends.
“It’s alive,” Mahan said. “We opened more and more restaurants and bars. We have the theater district here. The city center is on the rise.”
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