San Jose housing towers owner preps sales of residential units

SAN JOSE — The owner of two downtown San Jose housing towers is launching a full-scale effort to sell residential units in the high-rises, a gambit that could infuse the area with more residents and vibrancy and banish the property’s checkered past.

The marketing program involves the towers at 188 West St. James St., next to San Pedro Square. Together, the towers contain 640 condominium units.

Machine Investment Group, the owner of the towers, and Centurion Real Estate Partners, the property’s operator, have begun to scout for buyers to purchase unsold condominiums in the complex known as 188 West St. James.

“We have a very well-built, very attractive property in a great location in a city that is underserved by housing,” said John Tashjian, managing partner with Centurion Real Estate. “San Jose has significant housing demand and great purchasing power.”

Machine and Centurion say they have “rebranded and reimagined” the property, which consists of a 22-floor eastern tower with 337 units and a 20-floor western tower with 303 units.

“With a fully realized vision now brought to life under new ownership, 188 West Saint James offers something increasingly rare in the Bay Area: attainable homeownership in an iconic residential setting,” said Paul Zeger, president of residential real estate firm Polaris Pacific.

As of Feb. 4, 202 of the 303 units in the western tower were unsold, while all 337 units in the eastern tower, which remains empty, were unsold.

Starting prices for the units are expected to be around $425,000 for studios, in the $500,000s for one-bedroom units, and in the $900,000s for two-bedroom residences, according to Centurion Real Estate. For a limited time, two- and three-bedroom penthouse units are being offered for $1.88 million.

“This is market-rate pricing that is attainable,” Tashjian said. “We see real demand from younger buyers who feel they are priced out of single-family detached home ownership.”

Centurion Real Estate and Machine Investment believe they can tap a market of people who want to own a house but might prefer to live in a downtown neighborhood rather than a suburban setting.

“This could be a younger professional tech worker who isn’t ready to move into the surrounding suburbs of Silicon Valley but prefers to live in downtown San Jose,” Tashjian said. “They want a more vibrant city lifestyle in a vertical setting.”

The attempt to create a viable and vibrant residential hub arrives after years of neglect and fumbled strategies regarding the property by the prior owner, an affiliate of real estate firm Z&L Properties.

“The sordid history of this residential project is unmatched,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.

China-based Z&L Properties presided over a financial, construction, development, and legal ordeal involving the towers that lingered over an eight-year stretch.

A loan delinquency, lawsuits, project delays, construction blunders and defects, evidence that some workers were forced to live in an East Bay warehouse, allegations of slave labor, and a death haunted the property while Z&L owned it.

Z&L also bungled its marketing efforts. It sold some units, then switched to rentals for other condos. That left a blend of tenants and owners in the western tower, while the eastern tower remained empty.

In June 2025, an affiliate of Machine Investment took ownership through a speedy foreclosure that valued the property at $181.9 million. The foreclosure was the result of Z&L’s default on a $330 million construction loan.

“Selling these units will be a huge undertaking, no matter how low the price,” Staedler said. “The other tower needs to be completed and sold as well.”

When Machine Investment bought the towers last year, the real estate firm promised a fresh start for the site. Machine is investing $30 million to revamp and upgrade the towers, common areas, and amenities ahead of the condo sales.

Machine and Centurion intend to redesign the lobbies and offer a third-floor club whose features include private workspaces, social lounges, a catering kitchen, an outdoor terrace, a 75-foot pool, a hot tub, and barbecue areas.

“This project was purpose-built to bring vibrancy to downtown San Jose,” said Mark Ritchie, president of real estate firm Ritchie Commercial. “It’s good news that these condos are now being sold through ownership that is well organized.”

Tenants who had been renting condos are exiting the building, clearing the way for all of the units to be owned.

“Anything is better than empty real estate,” Ritchie said. “A lot of people love living in downtown San Jose.”

Demand is already significant, according to Centurion Real Estate. The company is working through a three- or four-page interest list. Some current occupants are seeking to buy larger units.

“Without question, this will help to activate the area,” Tashjian said. “You will have 900 to 1,000 people living at 188 West St. James. When people own, they will become part of the community. There is already a lot of energy at San Pedro Square, and that will only grow as we fill the towers with residents.”