A heavily industrial part of San Jose is about to get a very stylish repositioning, as BSB has broken ground on its Midtown Arts + Mercantile, which will convert an old warehouse into a creative community gathering space.

BSB is transforming 460 Lincoln into an industrial version of San Pedro Square, which the firm developed a few years back. It will include industrial users and tenants that make, manufacture and fabricate on-site—as well as have a small retail presence. Interior walls will be covered in corrugated metal sheets, giving a very industrial look. Here are BSB senior portfolio manager Chris Hagen, Studio Current's Jeffrey Current and BSB portfolio manager Forrest Cerrato taking a stroll inside the project this week.

Because it is industrial zoning, the retail aspect of each space is limited to 10% to 15% of the total square feet. So far the building is half leased, with a coffee roaster, a micro brewer, Good Karma Bikes, and Teramico, maker of the reclaimed-materials furniture used at San Pedro Square. Tenants it's after include culinary (think food truck park and spice vendors), industrial creators (florists, lighting fabrication, musician services) and the arts (photographers, painters, film). BSB is also hard at work on the multifamily front, having just gotten approval for its $150M Park View Towers adjacent to St. James Park.

Forrest says the project has all the right ingredients for foot traffic: an abundance of natural light, situated on a main thoroughfare connecting Midtown with Willow Glen. Here's an exclusive shot of its shape and design.

Here's a new rendering of the bike space. Jeff says San Jose needs to capitalize on some of the hidden opportunities to bring new life to cool old structures. This building has a great history tied to the fruit growing industry when San Jose was the "Valley of Hearts Delight," he says.