Swenson Ups Unit Count, Goes Affordable in San Jose

A long-vacant San Jose site near Diridon Station could soon see new life as housing in an updated proposal from Swenson.

A proposal from a Swenson affiliate for a seven-story, 272-unit apartment complex at 860 West San Carlos Street won final city approval on Wednesday, the Silicon Valley Business Journal and Mercury News reported. The project is considered 100 percent affordable with units split between low- and moderate-income households.

Total development costs are projected at roughly $580,000 per unit. Under the proposal, 55 apartments would be reserved for low-income tenants and 217 for moderate-income households, according to city documents cited by the Business Journal. Of the low-income units, 27 would be set aside for households earning 30 percent of area median income, often defined as “extremely-low-income.” Three-bedroom units at that income tier would rent for about $1,567 per month, representing a steep discount in a city where market-rate three-bedroom apartments average closer to $5,000.

Plans call for parking on the building’s first two floors along with fitness, lounge and laundry spaces throughout the property. The site spans just over 2 acres and sits within walking distance of Diridon Station, the city’s primary transit hub and a major focal point for long-term development ambitions tied to rail expansion and nearby office growth.

The affordable pivot marks a notable change from earlier plans for the property. In 2022, Swenson and Republic Urban Properties proposed a 12-story, 263-unit market-rate apartment project with ground-floor retail. Swenson said that version ultimately proved financially infeasible, leading the firm to rethink its plans. Swenson and Republic originally acquired the site from the Santa Clara Valley Transportation Authority. The joint venture won approval for that version of the project that year.

San Jose-based Swenson hopes to break ground on the project by late summer, according to Swenson’s president of development, Mark Pilarczyk.

— Chris Malone Méndez