The shooting happened around 12:30 a.m. Monday outside a business in the 2000 block of Story Road. Two men were injured and taken to a hospital for treatment. Both are expected to survive, police said.
A SWAT team was dispatched to the 900 block of College Drive at about 8 a.m. after police determined that the suspect in the shooting was connected to a home there, police Officer Jose Garcia said.
A black SUV associated with the suspect was found at the home.
Garcia said police evacuated a nearby day care center and an apartment complex on Fruitdale Avenue, and told residents of surrounding homes to shelter in place.
The SWAT team used tear gas and flash-bang grenades to try to force the suspect out of the home, Garcia said. However, the suspect was not found, and the search was called off around 4 p.m.
Police have not released the suspect's name but said he is a 26-year-old San Jose man.
"We consider him armed and dangerous," Garcia said.
He said that if caught, the suspect would be arrested on suspicion of assault with a deadly weapon and possibly attempted murder.
Marie Lawrence, 65, who lives in a triplex on College Drive, said the neighborhood is typically quiet.
"We just look out for each other," she said. "Whatever this is, I know this is big."
A separate shooting occurred early Monday morning near Tully and Quimby roads around the same time as the Story Road shooting, but police said the crimes are not related.
Police learned of that shooting when a man turned up at a local hospital with a gunshot wound.