SAN JOSE >> A high-profile office building in San Jose whose ownership group is controlled by the co-founder of a workspace company could be converted into a housing complex with 100-plus units.

The downtown building, located at 152 North Third St., is owned by a group that’s linked to WeWork co-founder Adam Neumann. Max Fink, an executive with Flow, a startup founded by Neumann, is also involved with the building’s ownership entity.

An estimated 133 residential units could be created within the building, with apartments on each floor of the nine-story structure, according to documents on file with San Jose city planners.

“This is a true win-win for the city,” said Robert Staedler, principal executive with Silicon Valley Synergy, a land-use planning and consultancy firm. “This would reduce the office vacancy rate and increase the number of residential units (in the downtown area).”

At one point, the nine-story building, perched at a prominent spot next to St. James Park, was slated to become a WeWork office hub. However, recent office market conditions torpedoed those plans.

Neumann’s group bought the 130,700-square-foot building in 2018 for $44 million, documents filed with the Santa Clara County Recorder’s Office show.

In 2021, the group obtained $45 million in financing from an affiliate of Rialto Capital Management, according to county real estate records. Then in the spring of 2023, they fell behind on payments for the property’s loan.

The new plan for the building focuses on converting it into a residential building consisting primarily of apartments, public planning files show. This is a preliminary proposal that is being floated to gauge the reaction of San Jose political leaders and city planners.

“The existing nine-story building was constructed in 1985,” the planning documents state. “That construction retained a historic ‘Eagles Hall’ facade that was constructed in 1909.”

The conversion work won’t disturb the eye-catching historic exterior that fronts Third Street.

“The historic facade will be retained and exterior alterations will be minimal,” the development proposal states.

Floors one and two would each have two residential units, according to planning documents. Floor three would have 15 units while floors four through nine would each have 19.

A lounge, game and play room, two music studios and a work room would be located on the first floor. A yoga studio, cinema room, two meeting rooms, co-work cafe, kitchen and fitness center would be part of the second floor.

A club room, several meeting rooms and an amenity terrace would be located on the third floor. The residences on this floor would all have private terraces and three of the units on the fourth floor would have them as well.

“Some elements of the recent renovations may be retained in the new residential use,” the proposal states.

The current uses on the site are offices and a long-time sandwich shop on the ground floor, Freshly Baked Eatery. It wasn’t clear how much, if any, of the office space is currently occupied by tenants.

“The building was undergoing renovations to a WeWork use over the past four years,” the proposal on file with city planners states. “Not all of the work that had a building permit was completed.”

CK2 Architecture submitted the proposal on behalf of the property owner.

A significant amount of demolition work was scheduled to occur on every floor, to varying degrees, according to the city planning files.

“The city of San Jose needs to do as much as it can to help make residential conversions like this happen,” Staedler said.

The addition of potentially hundreds of new residents next to St. James Park might also create more vibrancy in the area of the urban open space.

“More eyes on the park will help make St. James Park a safer place,” Staedler said.