![\"Street-level](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/06\/SJM-L-SJDTCITYDEAL-04-1.jpg\")
Street-level view of the Knox-Goodrich Building at 26 through 36 South First Street in downtown San Jose, seen on June 11, 2026.\u00a0(George Avalos\/Bay Area News Group)<\/p>\n
As a key condition of the city\u2019s purchase of the building, at 26 through 36 S. First St., Urban Catalyst would begin construction in 2027 of a 276-unit apartment complex several blocks away at 470 West San Carlos St. in San Jose, city public documents show.<\/p>\n
If the city\u2019s gambit to buy the Knox-Goodrich building from Urban Catalyst unfolds, the real estate firm would be obliged to complete a permit process by the end of 2026 on the eight-story Gifford Apartments on the western edge of downtown San Jose.<\/p>\n
![\"Interior](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/06\/SJM-L-SJDTCITYDEAL-01-1.jpg\")
Interior of the Knox-Goodrich Building at 26 through 36 South First Street in downtown San Jose, seen on June 11, 2026.\u00a0(George Avalos\/Bay Area News Group)<\/p>\n
What\u2019s more, Urban Catalyst would be required to launch vertical construction on the eight-story Gifford site by the end of next year.<\/p>\n
As a sweetener for development of the Gifford Apartments, officials will recommend that the residential hub be granted admission into San Jose\u2019s downtown incentive program.<\/p>\n
City leaders crafted the downtown incentive program to stimulate growth in the city\u2019s urban core by cutting construction taxes, park impact fees and permit costs for developers.<\/p>\n
Urban Catalyst bought the Knox-Goodrich building in 2019, paying $9.1 million, city officials stated in a staff report. San Jose economic development director Jen Baker, housing director Eric Solvan, and budget director Jim Shannon signed the memo.<\/p>\n
![\"Commercial](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/06\/SJM-L-SJDTCITYDEAL-03-1.jpg\")
Commercial buildings in downtown San Jose, including the Knox-Goodrich building at 26 through 36 South First Street in downtown San Jose, seen on June 11, 2026.\u00a0(George Avalos\/Bay Area News Group)<\/p>\n
Following the Knox-Goodrich site purchase, Urban Catalyst won city approval of a six-story mixed-use office and commercial building that would have featured ground-floor retail and a rooftop restaurant.<\/p>\n
Urban Catalyst began some preliminary construction on the South First site, which has been empty since the Lido night club shut its doors in 2019.<\/p>\n
The coronavirus outbreak, collapse in demand for new office space and a sour environment for financing new commercial real estate prompted Urban Catalyst to suspend development of the Knox-Goodrich property, according to the San Jose staff memo.<\/p>\n
The combination of the city\u2019s purchase and the apartment project development could help fuel an upswing in vibrancy for San Jose\u2019s sluggish downtown.<\/p>\n
\u201cThe Gifford, along with Urban Catalyst\u2019s Icon-Echo Apartments, Gateway Residential Tower by CORE Developers, and the Bank of Italy conversion to residential units by Westbank, will spur a revitalization\u201d in downtown San Jose, city staffers wrote in a memo to the city council.<\/p>\n
Once San Jose completes its purchase of the Knox-Goodrich building, the city intends to hold back in escrow $975,000 of the money the municipality is paying until Urban Catalyst accomplishes the development metrics regarding the 470 West San Carlos apartments, the staff documents show.<\/p>\n
The Knox-Goodrich building totals roughly 11,200 square feet, city officials reported. The building is associated with Sarah Knox-Goodrich, who commissioned the building in the 19th century and was an advocate for women\u2019s rights and suffrage.<\/p>\n
\u201cConstructed in 1889, the stone-and-brick building is a rare and significant example of Romanesque Revival commercial architecture in downtown San Jose and reflects the city\u2019s late-19th-century commercial development style,\u201d city staffers reported in the memo.<\/p>\n
At one point, Valbridge Property Advisors appraised the Knox-Goodrich building at $2.78 million, the city staffers stated. Urban Catalyst, however, declined an offer for the building at that price, the city documents show.<\/p>\n
If San Jose\u2019s purchase quest succeeds, the city will own a choice site next to the emerging Fountain Alley area in the city\u2019s historic district.<\/p>\n
\u201cThe recommended acquisition allows the city to act opportunistically to acquire a very well situated and historically prominent parcel of land downtown, while supporting near-term housing production and ground-floor commercial activation to advance the area\u2019s revitalization,\u201d the city staffers wrote in the memo to the San Jose City Council.<\/p>\n
City officials intend to proceed with short-term plans for the building on South First Street should San Jose buy the property.<\/p>\n
\u201cOnce acquired, staff will activate the ground-floor storefront in the historic Knox-Goodrich building with a cultural-serving or commercial use,\u201d city staffers stated in the memo.<\/p>\n
Officials also envision long-term opportunities for the Knox-Goodrich property.<\/p>\n