Santana Row is poised to receive its first new housing development in a decade.
Federal Realty Investment Trust, the owner and developer of the San Jose residential and commercial district, is planning to build a 258-unit apartment complex on the east side of the mixed-use neighborhood, The Mercury News reported. The development is slated for 358 Hatton Street, currently a surface parking lot for shops, restaurants, offices and homes in the Santana Row area.
“We’ve been working on this residential project for a very long time,” Patrick McMahon, Federal Realty’s senior vice president of development, told The Mercury News, saying the firm is “targeting a groundbreaking in a matter of weeks.” Construction is expected to take around 26 months with the housing units ready for occupancy in 2027.
Federal Realty is looking to build smaller units than those in the surrounding area. The majority of the Halton Street units will be studio and one-bedroom apartments, according to McMahon; 95 of the 258 would be studios, 131 would be one-bedrooms and 32 would be two-bedrooms.
By counterbalancing the mostly two- and three-bedroom units existing at Santana Row, Federal Realty is “trying to target a younger demographic that wants to live and work in a fully amenitized and immersive environment,” McMahon said.
“We want to appeal to a younger tech worker, and specifically a younger tech worker who is already working at Santana Row,” McMahon said.
The development comes as Santana Row attracts new commercial tenants, including restaurant, retailers and office tenants moving into the mixed-use neighborhood.
In May, Federal Realty sold Levare, a 108-unit apartment complex across the street in Santana Row at 3003 Olin Avenue, to an affiliate of Hines Interests for $73.1 million, or $677,000 per unit, according to The Mercury News. That development contains one-, two- and three-bedroom units and amenities including a pool, lounge, fitness center, game room, cabana, courtyard, grill and picnic area.
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