Welcome to the Downtown San Jose Retail Announcements e-letter!
This e-letter contains retail announcements from
the San Jose Redevelopment Agency.
www.sanjoseretail.com
Volume 6

Announcing
Newly inked leases:
Lucky Strike Lanes Sleek, sophisticated and with classy cocktails at the bar, the creators of Jillian's have astonished the hip Los Angeles scene with a revamped bowling alley concept. Three parts entertainment and one part restaurant and bar, Lucky Strike Lanes has been wildly successful at its Hollywood location and soon will have eleven locations nation-wide. The creators, Steven and Gillian Foster, have said their goal was to return bowling to what it was in the 1920s-30s: the martini bars of their time. Lucky Strike Lanes will take 17,000 SF at the first phase of CIM's 'Heart of the City' Project.

Paragon (Hotel Montgomery, 211 S. First Street): Paragon has signed on as the destination restaurant at the base of the Hotel Montgomery (under rehabilitation). Most often described as an American Brasserie, this white tablecloth restaurant serves American favorites with the freshest of local ingredients. The bar features hand-shaken cocktails and a variety of house-infused vodkas. Other locations include San Francisco, Portland (OR), and Berkeley. Opening: Summer 2004.

Capers (90 S. Second Street): Can you imagine a "sophisticated restaurant with a sports bar theme"? Capers, a locally owned and operated restaurant and bar, surprises patrons with its upscale presentation of the sports bar concept. Opening adjacent to PF Chang's this summer, Capers will focus its second location (the first is in Campbell) on tapas and drinks. Opening: Summer 2004

Zyng Asian Grill (210 S. First Street at Paseo de San Antonio): Zyng Asian Grill (formerly Zyng Noodlery) is the nation's fastest growing Pan Asian restaurant chain. Zyng blends the most popular dishes from China, Thailand, Japan, Korea, Vietnam and Singapore into one delicious and fun menu. A Teppan grill is the centerpiece of Zyng's fast-casual dining experience; patrons can "build" their own bowl to be made on the grill or go with one of Zyng's recommended dishes. Opening: Summer 2004.

La Victoria (131 W. Santa Clara Street): This local favorite will open a second downtown taqueria near San Pedro Square. La Victoria is known for having one of the best hot sauces in Silicon Valley--but don't try to get the recipe, it is a closely guarded secret! If you can't wait for the Santa Clara location to open, enjoy La Victoria today at 140 East San Carlos Street. Opening: Spring 2004

Ei8ht Group (33 S. Third Street): Ei8ht Group has signed a lease for 3,883 SF at the corner of San Fernando and Third Streets. The upscale bar will feature tapas catering to both lunch and after work audiences. The site is a beautiful retail space recently constructed as part of the Century Commons residential project (89 units).

M Bar (78 E. Santa Clara Street): A martini bar has leased this 2,000 SF space near the new Civic Center. The bar will cater to professionals, particularly for after work and weekend evenings.

Recent openings:
PF Chang's China Bistro (corner of San Fernando and Second Streets)

McCormick & Schmick (Fairmont Hotel Addition - Market Street)

Coming soon:
Spring 2004 Openings:
Postal Annex (125 E San Carlos)

Togo's (18 N San Pedro Street):

Lowry's Irish Coffee House (350 W Julian Street)

Blue Monkey Taco Lounge (San Fernando near First Street)

Summer 2004 Openings:
Electronics Boutique (125 E San Carlos)

The Melting Pot (South First near Post Street)

Great Clips (125 E San Carlos Street)

Lee's Sandwiches (Fourth Street Garage):

Quizno's (143 W Santa Clara Street)

Flames (Fourth Street Garage)

Fall 2004 Openings:
Black Sea Gallery (First Street near Santa Clara)

Bijan Bakery (Fairmont Hotel Addition)

Camera Cinema 12 (Second Street and Paseo de San Antonio)

The Vault (81 W Santa Clara Street)

A ground breaking ceremony was held March 10th at the Second and Santa Clara Street site. This is the first phase of the 'Heart of the City' Project, and includes 17,000 SF of retail, 111 parking spaces and 74 residential units. Lucky Strike Lanes has signed a lease for the entire 17,000 SF retail space.

The developer of the multi-parcel 'Heart of the City' Project, the CIM Group, is a full service real estate investor with in-house acquisition, development, finance, leasing and management capabilities. CIM invests mostly in districts of high population density. CIM has played a leading role in San Diego's Gaslamp Quarter and Santa Monica's Third Street Promenade.

ICSC Appointments available...
Contact Kelly Kline (408) 794-1038 to set an appointment for the ICSC Idea Exchange March 25th-26th, in Monterey.
See www.icsc.org to find out more about the International Council of Shopping Centers

Free Wi-Fi Offered in Public Spaces Now you can enjoy San Jose's 300 days of sunshine while checking your email, looking up restaurant reviews, or buying tickets to a downtown performance. Free wireless internet connectivity is now being offered in three Downtown public spaces: Circle of Palms, Plaza de Cesar Chavez, and San Pedro Square. For more information, visit the Convention & Visitors Bureau's wifi page: www.sanjose.org/wifi (Above, a crowd gathers for the launch of Free Downtown Wi-Fi.)

Restaurants are the fastest growing retail segment in Downtown San Jose. Last year, eleven new restaurants opened and ten are already under construction for 2004. Not only are new restaurants opening, but existing restaurants are staying! Downtown San Jose has a reputation as a dining destination and restauranteurs know the market can support their concepts.

Downtown San Jose Retaurant Fast Facts:

• 35,100 SF of new restaurants opened in 2003
• 42,350 SF of new restaurants are under construction for 2004
• Restaurants represent about 28% of Downtown retail uses
• There are over 110 restaurants in Downtown San Jose, all within a 1-mile radius or less.

Recent Request for Proposals pave the way for Downtown development projects
Requests for Proposals (RFP) are commonly issued by the Redevelopment Agency to solicit interest in development opportunities. So far, the RFP submittals for 2004 have indicated strong interest in the downtown by both local and national developers for retail and housing, as well as office, hotel, and cultural space.

Status Update:
"Crescent Jewelers" RFP - Considered by many as "Main & Main", this site consists of several buildings some with historic designation. Proposals were required to include an active retail use on the ground-floor. Submittals were received in January and developer selection is expected to occur in April.

Dimensions Site RFP - This 1.1 acre site is across Market Street from the McEnery Convention Center, and in the heart of the SoFA entertainment district. Submittals were received at the end of February and developer selection is expected to occur in April.

North San Pedro Housing Site RFP - This 9.2 acre site has the potential for 600-1,000 housing units, as well as neighborhood serving retail uses. Submittals were received in January and developer selection is expected to occur in April.

Camera One RFP - An RFP for the 4,200 SF movie theater currently home to Camera Cinema One will be released in late March. The theater will be vacated this fall when Camera Cinema consolidates its Downtown screens into one location (Paseo de San Antonio) and expands to a 12-screen multi-level theater.

Block 8 RFP - An RFP for this 1.48 acre multi-parcel development opportunity will be released in April. The Block 8 site is at the corner of San Carlos and Market Street. This is a for-sale or lease opportunity. Adjacenies include the Hyatt Sainte Claire, the Marriott Hotel, Hotel Montgomery, and the Fairmont Hotel.

For the latest RFPs, visit the Redevelopment Agency's website at www.sjredevelopment.com/rfq.htm

Downtown San Jose…
San Jose is described in the Zagat Survey 2002, as “The epicenter of Silicon Valley”. With almost one million people, 300 days of sunshine a year, and an average household income over $92,000, San Jose has “come into it’s own as a living, working, shopping and entertainment mecca.” -- Nation’s Restaurant News

SJRA is aggressively pursuing new retail, restaurant, and entertainment venues to support an existing strong tenant mix in the retail core. From 500 square feet on the ground floor of a historic building to 7,500 square feet at the base of a newly constructed luxury hotel, Downtown San Jose welcomes you!

Key Links:
San Jose Redevelopment Agency
San Jose Downtown Association
The CIM Group
Office of Economic Development
Entrepreneur Center
Convention and Visitors Bureau
International Council of Shopping Centers

For more information on retail in Downtown San Jose, check out SJRA’s retail website: www.sanjoseretail.com
Our website includes:

• Demographics
• Search function for available property
• Map of the retail core
• Resources and incentives
• Current development project summaries
• Downtown strategies & plans