SAN JOSE — A South Bay school district that closed five elementary schools earlier this year because of declining enrollment is exploring whether to buy a 337-unit downtown San Jose condo tower and turn it into housing for its workers.
Read more Richard Scolyer, cancer expert who ‘became his own subject,’ dies at 59
The possible purchase by San Jose Unified School District involves the eastern tower at 188 W. St. James St., a long-vacant residential high-rise, according to a document prepared for a recent school board meeting.
If pursued, the deal would mark one of the region’s more ambitious attempts by a school district to address the housing crisis for educators and staff.
RELATED: San Jose opens interest list for public workers seeking subsidized downtown housing
The district has hired CBRE, a commercial real estate firm, to evaluate the property and help determine whether a purchase should move forward. The firm is expected to assess the tower’s fair-market value, help craft an acquisition strategy, recommend a price and prepare a timeline for a possible purchase, district documents show.
The potential deal comes after voters in November 2024 approved Measure R, which authorizes San Jose Unified to issue $1.15 billion in bonds over 30 years for facilities improvements. An estimated $283 million of that amount could be used to create housing for school district staffers.
The possible purchase also follows the district’s closure of five elementary schools earlier this year, a move officials said was needed to address declining enrollment and make better use of its campuses.
“The district is interested in potentially acquiring a fee simple interest in the following real property comprising of 337 turnkey residential condominium units in the East Tower … and certain common space portions of the mixed-use condominium development located at 188 West Saint James St. in San Jose,” stated a contracting agreement prepared for the June 11 school board meeting.
Read more Sharks sign Zack Ostapchuk to four-year contract extension
The 337 condos in the 22-story eastern tower would be used for “employee housing,” the agreement stated. The condos would be rented to district workers.
Machine Investment Group, which owns the two-tower complex, gained control of the 640-unit residential hub in June 2025 through a foreclosure that valued the property at $181.9 million. That would work out to roughly $284,200 per condo.
The company is separately trying to sell all the condos in the 20-story, 303-unit western tower. Sales of those units began May 15. Through the close of business June 24, Machine Investment had sold 11 condos, according to a review of documents filed with the Santa Clara County Recorder’s Office.
Edward Matevosian, the CBRE executive providing consulting services related to the possible purchase of the eastern tower, will receive at least $50,000 and as much as $863,000 for his work, a school district document shows.
The district’s interest in the downtown tower is not its only attempt to create housing for workers.
In November 2025, San Jose Unified floated a plan to develop a 288-unit apartment complex at 760 Hillsdale Ave. in San Jose. That project, still in its early stages, would create apartments priced at levels district workers could afford, according to documents posted on the district’s website.
“Workplace housing is a pressing issue for us,” Seth Reddy, the district’s chief business officer, said at the time the 760 Hillsdale proposal emerged. “We cannot pay our staff sufficient wages to live in comfort and dignity in this area.”
The school district did not immediately respond to questions about the possible purchase of the downtown tower, including how much the deal could cost and whether Measure R bond funds would be used.
Read more Earthquake Tests Growing Ties Between U.S. and Venezuela
About the Author
