MidPen Proposes Affordable Housing Project in Sunnyvale

Developer interest in downtown Sunnyvale continues with another multifamily project proposal as more tech and artificial intelligence workers flock to the Silicon Valley city.

Foster City-based nonprofit MidPen Housing is planning a 110-unit affordable housing building at 295 South Mathilda Avenue in Sunnyvale, the East Bay Times reported. All of the units, save for a market-rate manager’s unit, will be income restricted.

The development was proposed at a former Wells Fargo bank site, which would give way to the residential building. The development earned support from some residents and community groups who claim it “will assist the city by better utilizing an old and unused commercial space,” the Greenbelt Alliance wrote in a letter in support of the project, saying it will deliver “much-needed smart, high-density housing in Sunnyvale.”

MidPen Housing plans to designate 25 percent of the affordable apartments for rent by previously unhoused individuals. Area median income for Santa Clara County is $143,850 for a one-person household, though exact income limits for tenants at 295 South Mathilda have not been disclosed.

As demand for both housing and offices bleeds out from San Francisco to Silicon Valley, driven by the booming AI industry, Sunnyvale has emerged as a popular destination for multifamily investors and developers. Last month, Dallas-based real estate firm Beam Reach proposed demolishing former Google-occupied offices at 215 Bordeaux Drive and replacing it with a 265-unit residential building. Sunnyvale planning commissioners unanimously signed off on the proposal.

At the same time, already-built apartment properties have been trading hands at a rapid clip so far this year. At the top of the year, PGIM and Interstate Equities Corporation bought the 184-unit Maddox apartment complex at 870-874 East El Camino Real for roughly $76.9 million. In March, Ethos Real Estate purchased The Crossings apartments at 1180 Lochvinar Avenue for $67.7 million. And earlier this month, Prometheus Real Estate Group acquired the 173-unit Highlander apartments at 620 Iris Avenue for $69.5 million.

The City of Sunnyvale is mandated by the state to plan for 11,966 new housing units by 2031.

— Chris Malone Méndez