SAN JOSE — The owner of the Bank of Italy tower in downtown San Jose obtained the funds needed to convert the historic high-rise’s office spaces to housing, a financial boost that’s poised to bolster activity in the city’s urban core.
Real estate developer Westbank, who owns the century-old landmark through an affiliate, received $74.1 million for the project at 12 South First St., documents filed on May 13 with the Santa Clara County Recorder’s Office show.
The Bank of Italy tower is visible as people walk along East Santa Clara Street in downtown San Jose, April 6, 2026. (Aric Crabb/Bay Area News Group)
Workers walk through the interior of the Bank of Italy tower at 12 South First Street in downtown San Jose, April 6, 2026. (Aric Crabb/Bay Area News Group)
Deutsche Bank AG New York Branch is the lender for the office-to-housing endeavor, according to real estate records. Cushman & Wakefield commercial real estate executives Dave Karson, Chris Moyer, Alex Lapidus and Chris Meloni arranged the financing.
“With financing from Deutsche Bank now in place, we’ve added another world-class institution to the team that will make this initiative into reality,” said Andrew Jacobson, a Westbank executive who heads up the real estate firm’s San Jose efforts.
The conversion is expected to produce 109 rental apartments, a public filing by San Jose’s housing agency shows.
“We are absolutely thrilled to be starting construction on the Bank of Italy,” Jacobson said.
Besides Deutsche Bank and Cushman & Wakefield, Jacobson said multiple San Jose political leaders and staffers, PG&E, and local real estate allies such as Gary Dillabough and Jeff Arrillaga played major roles in getting the project to its current point.
“Getting this building financed and completed would be a major win for downtown San Jose,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.
The 14-story building, built in a Renaissance Revival style, is situated at the corner of South First Street and East Santa Clara Street. Tenants on the structure’s higher levels will be able to occupy residences with commanding views.
Funding from Deutsche Bank will be used for the interior conversion as well as a wide-ranging top-to-bottom facelift and refresh for the building’s exterior, according to Westbank.
The tower is being converted into a mixed-use building. The residences will be located on floors two through 12, the San Jose city filing with the County Recorder’s Office shows.
Work is getting underway roughly 100 years after the building was completed in 1926. The conversion is slated to be complete in 2027, the city filing shows.
The Silicon Valley Initiative Partnership led by Canada-based Westbank already has completed considerable work inside the building in recent years.
The conversion and revamp represent “another step toward bringing new energy and activity to Santa Clara Street,” Staedler said. “I’m looking forward to seeing this stretch of downtown activated.”