Presbyterian church site changes hands in downtown San Jose

SAN JOSE — A development company affiliated with the legendary Swenson real estate and construction firm has bought a downtown San Jose church site that until recently was the home of a 170-year-old Presbyterian congregation.

MCM Diversified, acting through an affiliate, BCWS, has bought the property known as the First Presbyterian Church of San Jose.

The purchase of the property occurred slightly more than a month after the congregation held its final services June 30.

The MCM Diversified group paid $4.4 million for the church property, which is located at 49 N. 4th St., a few doors away from East Santa Clara Street, according to Santa Clara County public records that were filed on Aug. 2. The transaction was arranged by brokers Mark Ritchie and Maggie Bludau of Ritchie Commercial, a real estate firm.

The acquisition suggests a widening level of interest in downtown San Jose on the part of developers and real estate investors amid a surge of activity in the urban core of the Bay Area’s largest city.

“We are seeing a number of very capable developers that are getting involved in this part of the downtown,” Ritchie said.

MCM Diversified couldn’t be reached to discuss the company’s interest or potential development plans for the site.

The Swenson real estate firm, however, could wind up being involved with any future project on the site. MCM Diversified, headed by Martin Menne, is a development partner with the Swenson company.

The sale of the church occurred on the same day that an affiliate of Urban Catalyst paid $15.9 million to buy the site of a Chevron gasoline station a short distance away at North Fourth and East Santa Clara streets.

Urban Catalyst says it plans to build a mixed-use residential and retail tower called The Icon that will create 250 housing units.

Erik Hayden and Joshua Burroughs, executives with Urban Catalyst, said they intend to nurture a cooperative development effort with the MCM venture since the two real estate firms now own choice sites nearly adjacent to each other.

Ritchie said he was working to arrange the sale of a narrow parcel between the gas station and the Presbyterian church sites. If that deal occurs, it’s possible a large project could sprout along Fourth Street and fronting on East Santa Clara Street.

Besides the gas station site, the corners of Fourth and Santa Clara streets also feature the under-construction Miro residential towers that bid to be iconic additions to the downtown skyline; San Jose City Hall; and bustling 4th Street Pizza.

Adding to the activity at the intersection, Bayview Development, the developer and the owner of the Miro towers project, has bought the 4th Street Pizza property and a parcel two doors away on East Santa Clara Street.

“We are going to see a major activation of this entire corner,” Ritchie said.

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