The original plan for the old downtown San Jose Camera 12 movie theater, which shut down in 2016, was to turn it into a new movie theater. But developer Urban Catalyst soon figured out that wasn't going to work, for the same reasons cinemas in downtowns all over the country have closed their doors in recent years.
Urban Catalyst CEO Erik Hayden wanted to create a dynamic destination that would draw people to the city's commercial core with vibrant retail that energized the area. So the developer turned the 1990s-era multiplex into a mixed-use office and retail space called Paseo, after the nearby Paseo de San Antonio, a popular walkway that connects San Jose State University to the Plaza de César Chávez. The redevelopment project was creative and civic-minded enough to earn it a 2025 CoStar Impact Award, as judged by real estate professionals familiar with the market.
To accommodate the 75,000 square feet of office space and 25,000 square feet of ground-floor restaurant and retail space at the site at 201 S. Second St., the firm had to first rip out the old movie seats and soundproofing. Movie theater floors are commonly sloped for optimal viewing, so they had to be leveled.
Paseo is one of a several mixed-use commercial and retail projects by Urban Catalyst that are in one of the city’s so-called opportunity zones, economically challenged areas where investors can receive federal tax breaks in exchange for funding revitalization projects.
About the project: Urban Catalyst spent around $75 million renovating the Paseo property after acquiring it for $24.1 million in 2019. The firm received a $56.2 million construction loan through investment group Rialto Capital for the project.
What the judges said: "This redevelopment stands out as one of the most creative, resourceful, and impactful projects we've seen in years," said Devon M. Stout, a senior vice president at Compass Commercial. "The thoughtfully curated tenant mix has reinvigorated downtown nightlife and delivered a fresh and dynamic experience while showcasing the very best of San Jose."
They made it happen: San Jose developer Urban Catalyst's CEO, Erik Hayden, spearheaded the project along with COO Josh Burroughs, Development Manager Dominic Giacalone and Projects Director Mike Walsh with involvement from Swenson ARC TEC, Urban Putt Los Angeles and MO Hospitality Group.
CoStar Senior Marketing Manager Ashley McClain contributed to this report.