The carjacking and kidnapping was reported at 7:09 p.m. in the Third Street Garage, a parking garage located at 95 N. Third St., according to police.
A man armed with a gun took the Camaro and kidnapped the vehicle's owner during the carjacking.
The victim was found safe shortly before 9 p.m. near East Santa Clara and 17th streets. The vehicle was abandoned and the suspect was seen running south on 17th Street from East Santa Clara Street, police said.
Officers responded and searched the area for the suspect, asking residents to shelter in place during the search. However, police came up empty and the search was called off at 3:52 a.m.
Anyone with information about the case or whereabouts of the suspect is encouraged to call San Jose police at (408) 277-8900. People wishing to remain anonymous can call the Silicon Valley crime Stoppers at (408) 947-STOP or visit www.svcrimestoppers.org and may be eligible for a reward.