Historic Bank of Italy Tower Becomes Housing

Westbank and Urban Community have started converting San Jose’s historic Bank of Italy tower into apartments, pushing ahead with one of the city’s most visible office-to-housing projects. The downtown building at 12 South First Street is being remade into 109 market-rate units after sitting largely empty since 2017. The project gained fresh momentum in May, when the development secured $71.1 million in financing, according to the Silicon Valley Business Journal and Bay Area News Group. City officials have tied the project to a broader effort to add housing and refill a downtown core still coping with high office vacancy. ### Which building is being converted? The Bank of Italy tower at 12 South First Street is a historic downtown San Jose office building that developers say will become a mixed-use residential property with 109 apartments. NBC Bay Area reported in April that the building had been effectively abandoned since 2017 and that rents were projected at about $2,400 to $3,500 a month. Propmodo reported the tower was completed in 1926 as a Bank of Italy branch before that institution became Bank of America. The publication said the building, designed in an Italian Renaissance Revival style, has long been one of downtown San Jose’s best-known landmarks. ### Who is behind the project? Westbank and Urban Community are the developers advancing the conversion, according to multiple reports. (nbcbayarea.com) Urban Community Chief Executive Gary Dillabough told NBC Bay Area in April that the project was meant to reconnect the building with downtown life after years of vacancy. The Real Deal reported in April that the two firms had broken ground on the conversion, describing it as one of San Jose’s more closely watched office-to-residential projects. (propmodo.com) The report said the tower is a 14-story property and that the conversion comes as Silicon Valley’s urban core faces weaker office demand. (nbcbayarea.com) ### How much money has the project lined up? The financing package totaled $71.1 million, according to the Silicon Valley Business Journal, which reported on May 15 that the downtown San Jose office-to-housing conversion had secured the money needed to move forward. Bay Area News Group reported a day earlier that the owner had obtained the financing required for the residential conversion. (therealdeal.com) Separate trade reports described the financing slightly differently. Multi-Housing News and RENTV reported totals of about $74.1 million for the same conversion, indicating that public filings and deal descriptions may count related components differently. Those reports also identified the ownership venture as Westbank and Urban Community, or an affiliated partnership. (bizjournals.com) ### What role is the city playing? San Jose created and expanded downtown residential incentives this year to encourage office-to-housing conversions and other multifamily projects. A city information memorandum dated February 25 said council action was coming on tax and fee waivers for the Gateway Tower and Bank of Italy developments at 470 South Market Street and 12 South First Street. (multihousingnews.com) The city’s housing incentive materials say the programs are meant to spur residential construction after San Jose recorded zero market-rate housing starts in 2024. The city says available incentives include reductions in construction taxes, inclusionary housing fees and park fees for qualifying projects. (sanjoseca.gov) ### Why are officials focused on this conversion? San Jose Mayor Matt Mahan told NBC Bay Area in April that California housing policy had too often narrowed its focus to publicly subsidized housing and overlooked market-rate supply. Propmodo reported city officials see the Bank of Italy conversion as a test of whether more housing can help support downtown activity, construction work and street-level foot traffic. (sanjoseca.gov) Downtown vacancy has been a major part of that push. Propmodo cited Cushman & Wakefield data showing downtown San Jose office vacancy at roughly 30%, above the broader Silicon Valley market. ### When will people be able to move in? NBC Bay Area reported on April 6 that move-in was expected in about 12 to 14 months and that the apartments would be market-rate rentals. (nbcbayarea.com) That timeline points to occupancy beginning around the second quarter of 2027 if construction stays on schedule. That timing is an inference based on NBC Bay Area’s April 2026 report and not a newly announced delivery date. (propmodo.com)