Retail Rebound

Two major shopping centers in San Jose will be completed next year. One is a "reinvention" of the tired Vallco Fashion Park on Wolfe Road, the other a ground-up power center at Coleman Avenue and Taylor Street.

By Maureen Donohue

With demographics changing to young professionals and empty nesters, and general plans reaching their limits, cities in the San Jose/Silicon Valley area are finding shopping malls the ideal target of redevelopment and a way to keep residents discretionary income within their boundaries.

Todd Stoutenborough of Perkowitz + Ruth, the lead architect on the project, said the main attraction of Vallco Fashion Park renovation will be the addition of a 16-screen rooftop cinema that will seat 3,500 (rendering courtesy of Perkowitz + Ruth).

A case in point is a "reinvention" of Cupertino's beleaguered Vallco Fashion Park on Wolfe Road. The project, which is in its beginning stages, is slated to cost $100 million when Redwood City-based DPR Construction completes the 555,000-sq.-ft. job by November 2006.

The architect on the project is Long Beach- based Perkowitz + Ruth. The owner is Landmark Properties Management.

Todd Stoutenborough, AIA and Perkowitz + Ruth's lead architect on the project, said the main attraction of the renovation will be the addition of an 80,500-sq.-ft., 16-screen rooftop cinema that will seat 3,500. The ticket window for the cinema will be will be located in a central atrium in the mall and patrons will access the theater by means of a dramatic escalator connection up to the cinema lobby, with panoramic views to the main street through a glass lobby in the mall.

The renovation will also add a food court and will reorient the front of the mall--now an uninviting, heavily shadowed parking area opening--to traffic on Wolfe Road. Vallco is currently anchored by Macy's, Sears and J.C. Penney.

The $100 million construction cost does not include the cost of developing 204 condominiums above several anchor tenants on an adjacent 41-acre site, which will include 105,000 sq. ft. of new retail space, sitting across Wolfe Road from the main body of the mall on an existing surface parking lot. The tenants will include a sidewalk café, street-front retail and a specialty grocery store. The retail spaces and residential units will all have a view of the street screened by mature ash trees.

An existing skywalk lined with shops currently offers passage over a main road connecting the mall with the new retail development. The skywalk will be completely renovated to incorporate a glass wall opening up the walkway for natural light and a view of the streetscape. Specialty outdoor shops and restaurants will intersect the elevated walkway in an attempt to generate street activity as well as to provide a new entry point back to the mall and entertainment center.

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Cupertino Mayor Patrick Kwok and several council members indicated that sales tax revenue generated by the mall is sorely needed by the city, which suffered greatly in the recent regional recessions.

MarketCenter Is Out of the Shoot

Meanwhile, Atlanta-based Cousins Properties Inc. recently purchased land and began the development of the $80- million, 360,000-sq.-ft. San Jose MarketCenter in San Jose. The power center will be anchored by Target, which will own its 140,000-sq.-ft. store, Marshall's, Cost Plus, Michael's, PETsMART, and Office Depot. The center also will contain 16,000 sq. ft. of in-line shops and several pads.

Los Angeles-based Nadel Architects is the architect for the project. San Jose-based BKF will serve as site engineer and San Jose Construction is the general contractor.

San Jose MarketCenter is on 34 acres at the intersection of Coleman Avenue and Taylor Street, adjacent to downtown San Jose. The 100-year-old former railroad yard is within a redevelopment project area designated by the San Jose Redevelopment Agency. The parcel is already 80-percent committed, said officials with Cousins Properties.

As many as 14 outparcels in various stages of negotiation are slated to be developed on the periphery of the center. Restaurants, financial institutions, and other users are expected to occupy these pads. The site also features freeway on- and off-ramps to Highway 87 and Interstate 880.

"A high profile development such as San Jose MarketCenter is an excellent demonstration of our commitment to expanding our retail division's development pipeline within the Western Region," said Joel Murphy, president of Cousin's retail division. "Many of our retailer customers have been searching for opportunities to establish a presence in urban infill locations such as San Jose MarketCenter.

"This development is exactly the type of opportunity we want to pursue. It features a high-barrier-to-entry location, access to a growing population base, and a supportive local economic development effort."

If the schedule stays on track, the San Jose MarketCenter is scheduled to open in March.