Two Washington-based developers are moving forward with developing a 200-unit senior housing apartment in San Jose, according to documents filed with Santa Clara County.
Columbia Pacific Advisors and SRM Development secured a nearly $80 million construction loan for the project.
The site of the four-story project is 3315 Almaden Expressway. It will feature 195 homes in which 166 are assisted living and 29 are memory care. The assisted living units include 35 studios, 97 one-bedroom units, and 34 two-bedroom units. The building will include 230 beds.
The $78.5 million loan is financed by The Bank of Texas and BOK Financial, according to the county documents.
The senior housing project will replace an office and retail building with 44,500 square feet that occupies the 3.5-acre site. The property will be right next to the Capitol Expressway Auto Mall and three miles from the Westfield Oakridge Mall.
Demand for senior living facilities is high nationally, according to a report by the National Investment Center. Senior housing occupancy increased 0.9 percentage points from 80.5 percent in the second quarter of 2022 to 81.4 percent in the third quarter of 2022. This is the fourth consecutive quarter of occupancy growth. The metric has increased 3.4 percentage points from a pandemic low of 78 percent year-over-year.
According to the report, demand for senior housing is at the highest it has been since 2005 while inventory increased by only 3,489 units. One of the contributing factors is the aging of the baby boomer generation.
According to another report by NAIOP, in 2030, the baby boomers will all be over 65; and in 2040, the youngest of the generation will be over 75.
“This generation is sometimes referred to as a ‘wave’ because it makes up a large percentage of the population and is expected to require a larger share of health support and housing services,” the report said.
This isn’t SRM’s only senior living project in the Bay Area. The company is building a 157-unit senior living facility in the East Bay city of Hayward.
Also, San Jose is partnering with a large church to bring 80 senior units to the city in a larger 237 unit development on the church’s property.
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Senior living units to rise in Hayward as need increases
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