Two real estate firms are considering a proposal to develop more than 400 homes at an office building site in North San Jose. The potential project is located on a 5.9-acre parcel at 3550 North First Street, which is currently owned by an affiliate of LBA Realty, according to Santa Clara County real estate documents.
The proposal reflects ongoing interest among developers in converting office properties into housing as the Bay Area office market remains uncertain. Real estate executives have submitted a preliminary plan to San Jose city officials for the development, which would include an existing office building, an adjacent parking lot, and a nearby empty field.
LBA Realty’s plan calls for the construction of 444 homes with varying densities. Of these units, 373 would be affordable apartments and 71 would be for-sale townhome condominiums. The company acquired the site at the corner of First Street and Baypointe Drive in February 2025 for $18.5 million through an all-cash deal with Analog Devices, a semiconductor company.
At the time of purchase, marketing materials from commercial real estate firm Cushman & Wakefield indicated that the office building totaled 76,700 square feet. LBA Realty paid approximately 42.9% below the site’s assessed value of $32.4 million as of January 2025.
A growing number of developers are exploring ways to repurpose their office properties due to challenges in the current market environment. Some are considering conversions to housing projects or data centers as alternatives.
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