San Jose grocery store to close after building bought by private equity

A wealthy enclave of San Jose is losing its primary supermarket after the Silver Creek Community Market announced it will close and lay off all of its employees by September.

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The organic-focused supermarket, one of six owned by Santa Cruz chain New Leaf Community Markets, filed a WARN notice with the state last week announcing 61 layoffs and the “permanent” closure of the store by Sept. 20. 

It’s not clear exactly why the store is closing. Neither the property manager nor New Leaf Community Markets responded to multiple SFGATE requests for comment. An employee at the store said it was related to lease negotiations.

City Councilmember Domingo Candelas said in a statement that he was “deeply concerned” about the closure and was working with city staff to “explore a path forward” on plans for the soon-to-be-vacant store. 

“It is unfortunate to see a beloved local grocery store close in our community,” Candelas said. “Access to groceries is essential in every neighborhood, and this closure will have a real impact on our residents.”

Silver Creek is a wealthy enclave on the southeastern side of the city, home to gated communities, NFL stars and a well-known country club. The average household income within a mile of the store is over $343,000, according to a leasing advertisement produced by the property manager. Locals will still be able to shop at the smaller Bonfare Market or drive approximately 3 miles to a Sprouts or Walmart.

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The grocery store is part of Canyon Creek Plaza, which was purchased for $27.9 million in 2021 by a San Diego group called Retail Opportunity Investments Corp. Blackstone, one of the world’s largest private equity groups, bought that corporation in 2025 and folded the property into a company called Perform Properties. Blackstone and Perform Properties did not return SFGATE’s request for comment. 

Grocery stores across California are facing an increasingly challenging economic picture, as inflation pushes up prices and customers cut back on spending. Overall spending at California grocery stores has fallen for all of the past six months, according to census data. And Albertsons recently reported a drop in grocery stores sales nationwide, with CEO Susan Morris saying the grocery industry is particularly “under pressure” in the West.