Interest is soaring for condominiums at two residential towers in downtown San Jose, with over 500 prospective buyers already on a waiting list. The 188 West St. James towers, owned by Machine Investment Group and operated by Centurion Real Estate Partners, are being positioned as a potential catalyst for revitalizing the area. The residential complex consists of a 640-unit hub, featuring a 22-floor eastern tower with 337 units and a 20-floor western tower with 303 units.
Strong Market Response and Pricing Strategy
According to John Tashjian, managing partner at Centurion, the response has been unprecedented. “We have about 500 people on the waiting list to buy condos,” he noted. “That’s unheard-of interest. I’ve had 50, I’ve had 100. But I’ve never seen anything like this before.” The starting prices for the units range from $429,000 for studios to $1.8 million for penthouses, which Tashjian believes are appealing to a younger demographic priced out of single-family homes.
The demand for these units is indicative of a broader trend in the South Bay area, where housing is in high demand. “There is a lot of pent-up demand for housing, and San Jose is desperate to add housing in the city,” Tashjian explained. The developers anticipate that around 700 to 900 residents could eventually inhabit the complex, contributing to the vibrancy of downtown.
Community Impact and Future Prospects
Real estate experts are optimistic about the towers’ impact on the local economy. David Taxin, a partner at Meacham/Oppenheimer, remarked, “This can be fantastic for the downtown. You are going to get more people downtown. You will see a trickle-down effect for restaurants.” Bob Staedler, principal executive with Silicon Valley Synergy, echoed this sentiment, noting that homeowners with equity in the towers would likely contribute to the area’s overall success.
Machine Investment is investing $30 million in renovations to prepare the towers for residents, which includes approximately $6 million dedicated to amenities and pool areas. Tashjian estimated that the lobby and amenities in the western tower could be completed within two to four weeks, with the eastern tower following in two to three months. “It’s great to hear that the other tower is as close to being finished as it is,” Staedler added.
The revitalization of the towers marks a significant turnaround from their troubled past under the ownership of Z&L Properties. The previous management faced numerous challenges, including financial difficulties, construction delays, and allegations of labor violations that plagued the project for nearly eight years. Following a default on a $330 million construction loan, Machine Investment acquired the property in June 2025 through a swift foreclosure process valued at $181.9 million.
This new ownership hopes to erase the towers’ troubled history from public memory. “It’s a turn-the-page moment,” Tashjian stated. “This is a new chapter for downtown San Jose,” as the community looks forward to the completion of the residential complex and the influx of new residents that it promises to bring.
