By Meghan Hall
Another multifamily project in San Jose is nearing the end of the entitlements process after clearing the environmental review phase and securing construction permits. In August, the City of San Jose issued the final environmental impact report (EIR) for Almaden Villas, a 62-unit multifamily building. The project is one of many that if formally approved, will bring much needed housing to San Jose in the future.
The property is located at 1747 Almaden Road and totals 0.57 acres. Currently, the site is developed with two vacant commercial buildings totaling about 1,500 square feet. Public records indicate that the asset has historically been used for autobody repair shops, although the existing structures will be demolished to make way for development. The new project has been proposed by Mayberry Workshop on behalf of the property owner, listed as Sam Nemazi. Nemazi could not be immediately reached for comment.
In all, Almaden Villas would rise six stories in height and total 90,323 square feet. Of the 62 units, nine would be designated as affordable. Project plans indicate that units will range in size from about 673 square feet to nearly 1,500 square feet.
An “alternative” parking arrangement, using the use of lifts and stacks, will accommodate 87 vehicles in an at-grade garage. Residential amenities will include a garden and dog run, as well as a community deck with barbecue, community kitchen and club room on level two. The roof level would have additional outdoor lounge space complete with a garden area and exercises deck, while floors three through six would each have their own amenity rooms.
The property is located just off of State Route 87 in a largely residential neighborhood. While much of the surrounding area is single-family, the Almaden Villas will not be the most multifamily project in the area. The Village at Willow Glen, a 133-unit senior living complex completed in 2002, as well as the 1776 Apartments, which totals 128 units and was built in 1990. The Scotia Apartments, also located adjacent to the site, were completed just last year. The property includes 55 units.
Timing for remaining entitlements and buildout remains unclear; however, as new job creation in the region continues to outpace housing supply, new developments continue to be needed by cities. Data released by Kidder Mathews this quarter shows that rental rates in the Bay Area continue to trend upward, and that unemployment, vacancy and construction industries are trending downward.
In its report, Kidder Mathews notes that new multifamily construction is down 23.20 percent, and the number of projects under construction decreased 11.17 percent year-over-year. While vacancy has declined across the Bay Area by nearly 30 percent, asking rents have risen, increasing 5.46 percent. On average, tenants pay about $2,271 per month for their units.
Despite this, however, developers are moving along with plans. Sixth & Jackson, located at 696 N. 6th St. in San Jose, is expected to deliver in the fourth quarter of this year. At 518 units, the project is one of the largest under construction in the Bay Area, and in Silicon Valley. Other major multifamily developments in the pipeline include Stewart Village Phase II in Sunnyvale, which includes 944 units expected during the second quarter of 2022, and MVSA in Mountain View, which will deliver 642 units around the same time. San Jose’s MIRO, built by Bayview Development Group, was the top delivery of the third quarter, bringing 630 units to market in August.