Pacific West Communities and Central Valley Coalition for Affordable Housing have landed a $70.9 million construction loan to build a 240-unit affordable housing complex in San Jose.
An unidentified affiliate of the Idaho-based builder and nonprofit developer based in Merced secured the loan to construct the six-story complex at 4300 and 4310 Monterey Road, in Downtown, the San Jose Mercury News reported. It would replace a vacant lot.
The lender for the construction financing was not disclosed. Tax-exempt and taxable bonds, tax credits and other financing will cover the remaining project costs. It has an estimated construction budget of $119.2 million.
Plans for the project north of Skyway Drive, near a Caltrain stop, call for 237 affordable units for low-income residents and three units set aside for managers at market rates.
The project, designed by AO Architects, would include a plain complex clad in white, teal, yellow and orange, without any apparent balconies, according to a rendering.
The apartments, linked by an open paseo, would have a large green area with a half-court basketball floor and dog park, according to the AO Architects website. The affordable units are mainly studios and one-bedroom apartments, with 1,075 square feet for ground-floor shops.
A double-volume podium would include a parking stacker for residential parking.
Initial plans for the project were filed in March 2022 by AMG & Associates, a general contractor based in Santa Clarita, for four five-story buildings containing 426 affordable apartments. An unidentified affiliate of AMG bought the 2.3-acre property for $5 million.
It’s not clear whether AMG is still involved with the project.
The real estate alliance anticipates the project will require two years to complete, with construction expected to begin this year, according to the Mercury News.
The construction financing comes after Pacific West, the Central Valley Coalition and Maracor Development landed a $66 million loan to build a 166-unit affordable complex at 802 South First Street, in Downtown San Jose.
In February, Pacific West Builders, a contracting unit of Pacific West Communities, secured $125.6 million in construction financing to build 173 affordable apartments at 4300 Stevens Creek Boulevard in west San Jose, after buying the approved site for $3.5 million.
Pacific West Communities is a unit of The Pacific Companies, founded by Caleb Roope in 1998, which has built 160 multifamily and charter school projects across the West, according to its website.
— Dana Bartholomew
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