SummerHill Homes has paid $27.5 million for an office property in Palo Alto it plans to replace with 48 townhomes.
An affiliate of the San Ramon-based developer bought the 2.4-acre property at 2850 West Bayshore Road, the San Jose Mercury News reported. If plans move forward, a 32,400-square-foot office building would be demolished.
At the same time, the SummerHill affiliate obtained $45 million in financing from Comerica Bank.
Plans filed early last year call for 48 townhomes in eight, six-unit buildings, along with private streets and landscaping.
The 89,300-square-foot project, designed by Brentwood-based SDG Architects, would contain three- or four-bedroom units and range between 1,600 and 2,100 square feet. Each would come with a two-car garage.
The townhomes would include an 8,400-square-foot park in back, with right-of-way on Bayshore Road for a bike lane and construction of a 14-foot sound wall along the street.
A rendering depicts a row of white and sage townhomes with a first floor trimmed in fake stone.
Parks, baseball fields, a softball field, a playground, a skatepark and trails surround the development site. Prices for the homes and a timeline for development were not disclosed.
SummerHill Homes, a subsidiary of commercial brokerage Marcus & Millichap, in April floated plans to replace an old office building in North San Jose with 287 apartments and 42 condominiums.
In January, SummerHill paid $108 million to buy 31 acres of land in San Ramon’s Bishop Ranch, with plans to build more than 400 homes in three new neighborhoods.
— Dana Bartholomew
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