Historic Bank of Italy Tower Becoming 109 Homes

Westbank and Urban Community have moved a long-discussed downtown San Jose conversion closer to completion with fresh financing for the Bank of Italy tower at 12 South First Street. The developers are turning the historic office building into 109 market-rate apartments, replacing workspace in a landmark that has sat vacant since 2017. A May 15 financing announcement put the loan package at $74.1 million, while city materials and other coverage tied the project to San Jose’s newer tax-and-fee waivers for office-to-housing conversions. The building, completed in 1926, is one of downtown’s best-known early high-rises and was originally commissioned by Bank of Italy founder Amadeo Pietro Giannini. ### Why is this building getting converted now? February 2026 was a key date because San Jose expanded its downtown residential incentive program to include office-conversion projects. City materials say the program offers substantial reductions in construction taxes, inclusionary housing fees and parks fees as officials try to restart housing production after a year with no market-rate housing starts in 2024. (multihousingnews.com) The Bank of Italy project was specifically named in a Feb. 25 city information memorandum covering tax and fee waivers for developments at 12 South First Street and 470 South Market Street. That memo signaled City Hall was preparing council action tied to the conversion. ### Who is paying for the project? Deutsche Bank provided the $74.1 million loan, according to Multi-Housing News, which cited a deal arranged by Cushman & Wakefield on behalf of Silicon Valley Initiative Partnership. (sanjoseca.gov) The ownership is a joint venture between Westbank and Urban Community, according to that report and other coverage of the project. (sanjoseca.gov) May 15 coverage in the San Jose Business Journal also reported financing for the conversion, though that report described the package as $71.1 million. Publicly available secondary reports differ on the exact figure, but they agree the financing closes a major gap for the office-to-housing plan. (multihousingnews.com) ### What exactly will be built inside the tower? The 109 apartments are planned as market-rate rentals, with units on the second through twelfth floors. Multi-Housing News said the overall project will span 126,000 square feet of residential and commercial space, while developers plan to preserve the exterior facade and architectural detailing. (bizjournals.com) NBC Bay Area reported in April that rents were expected to range from about $2,400 to $3,500 per month. That report also said the project would include no on-site parking, reflecting the building’s downtown location and access to transit and nearby garages. ### Why does this tower matter in San Jose? The Bank of Italy tower was completed in 1926 and is widely described as one of San Jose’s earliest skyscrapers. (multihousingnews.com) Multi-Housing News said Bank of Italy founder Giannini commissioned the building and architect Henry A. Minton designed it. April 6 remarks from Mayor Matt Mahan and Urban Community Chief Executive Gary Dillabough framed the project as part of a broader downtown housing push. (nbcbayarea.com) Mahan told NBC Bay Area that California had been “penny wise, pound foolish” in housing policy, while Dillabough said residents would be making “a huge investment” in the city by living there. (multihousingnews.com) ### What does this say about San Jose’s office market? February and May reports tied the conversion to weak downtown office demand and the city’s effort to repurpose underused buildings. City-backed descriptions of the incentive program said officials wanted to spur construction activity, and trade coverage said San Jose had widened the program specifically to help office conversions move forward. (nbcbayarea.com) The building itself has been empty for years. Multi-Housing News said the tower has been vacant since 2017, and NBC Bay Area separately described it as essentially abandoned before the residential plan advanced this spring. ### What happens next for tenants and the city? April 6 reporting from NBC Bay Area said move-in was expected in about 12 to 14 months if construction proceeds on schedule. (sanjoseca.gov) The next public milestones are likely to come through San Jose permit and council records as the developers use the financing and fee waivers to carry out the conversion at 12 South First Street. (nbcbayarea.com) (multihousingnews.com)