October 10, 2024

Housing Finance Development

It's Your Housing Finance Development

San Jose affordable homes land financing package of 0 million-plus

San Jose affordable homes land financing package of $100 million-plus

SAN JOSE — A big affordable housing project in San Jose is pushing ahead with a property purchase and the landing of a crucial money package for the construction of the residences, public documents show.

The affordable residences are part of Stevens Creek Promenade, a big mixed-use development that will feature housing, retail and a hotel.

Pacific West Builders, acting through an affiliate, paid roughly $3.5 million for the site where the affordable homes would be built, according to documents filed on Feb. 20 with the Santa Clara County Recorder’s Office.

Miramar Capital Group, which is the primary developer of the Stevens Creek Promenade complex, sold the site for the affordable housing portion of the project to Idaho-based Pacific West Builders.

In 2020, Santa Monica-based Miramar Capital Group and Machine Investment, acting through affiliate MPG Stevens Creek Owner, paid $54.5 million for the overall development site, including the just-sold affordable homes parcel. The overall development property is located on the south side of Stevens Creek Boulevard between Kiely Boulevard and Palace Road.

The California Housing Finance Agency authorized the issuance of a bond package to enable construction financing for the affordable housing project, according to a staff report prepared for a recent meeting during which the state agency approved bonds and funding for the project.

The construction financing was obtained by Pacific West Builders and Miramar Capital Group, which are working together to develop the affordable housing project, according to several loan documents filed with the Recorder’s Office.

The affordable residential development would consist of 173 homes. Of these, 171 would be affordable apartments rented to residents belonging to households making 30% to 70% of the area’s median income, according to the state housing agency’s report. Two of the units will be market-rate homes for on-site managers.

The Santa Clara County area median income in 2023 was $181,300 for a four-person household. That would mean the income limits for the affordable homes in this project would range from about $54,390 a year to $126,910.

The total construction package is valued at $125.6 million, according to the agenda materials for the state Housing Finance Agency.

Of that overall amount, Citibank is providing the project with $98.6 million in construction financing through two separate loans. Bonneville Multifamily Capital is providing a third loan of $10 million, according to the California Housing Finance Agency documents.

The 173-unit project will include 44 studio units of 422 square feet each, 37 one-bedroom units ranging in size from 563 to 573 square feet, 45 two-bedroom units of 776 square feet and 47 three-bedroom units of 1,064 square feet. Two of the three-bedroom units will be manager’s homes.

“This is an inclusionary project and will be part of a larger development that will include two market-rate apartment buildings and a 250-room hotel,” the state housing agency documents state.

One of the market-rate apartment buildings will be 191 units and the other will be 216 units.

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