By Jon Peterson
San Francisco-based Carmel Partners has in the works a new residential development project in downtown Sunnyvale that could eventually include a total of 417 units. The project address is at 777 Sunnyvale-Saratoga Road, according to sources familiar with the project.
Carmel Partners, through a company representative, declined to comment when contacted for this story.
The property had been occupied in the past by an Orchard Supply Hardware store, which is no longer on the premises. The property is now a single-story 33,700 square-foot warehouse that would be demolished to make room for the new development. It has not been determined at this time when the new project would get started or how long it may take for it to be completed.
The planned new property would be an eight-story complex. There would be a total of 377 apartment units and 40 three-story townhomes. A portion of the project, or 50 units, would be allocated to affordable for-sale and rental homes that would go to residents on low and very low incomes, as written in application documents with city planners earlier this year. The development would also have around 12,000 square feet of space for shops and restaurants on the ground floor of the project.
Carmel filed its development plans under the SB 330 rule, a state law that streamlines the review and hearing process for compliant residential projects and California’s density bonus law. This law allows developers to build a denser development than permitted under local zoning regulations in exchange for additional on-site affordable housing. The project will need to increase the number of affordable units by 25 percent to qualify for the bonus, according to comments the city of Sunnyvale provided to its application last month.
The project is located in an area where the residents will have the opportunity to take advantage of many nearby area amenities. One of them is Las Palmas Park, which includes tennis and pickleball courts and a dog park. The area also has several retail establishments on both sides of Highway 82.
According to public records, Carmel Partners is the current owner of the property for its commingled fund called Carmel Partners Investment Fund VII. The fund manager completed a capital raise for the commingled fund in 2018 with total commitments of $1.28 billion, according to industry sources. One of the investors in the commingled fund with a $25 million commitment was the San Francisco Employees Retirement System, according to information provided by the pension fund.
Carmel Partners is actively raising capital for Investment Fund VIII. The company has not established the targeted capital raise for the new fund. Investors in this fund include Texas County & District Retirement System with a $125 million commitment and Maryland State Retirement and Pension System with a $100 million commitment.