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REIT cites builder’s remedy for 315-unit project in Sunnyvale

Townhome-apartment development waits to see if city misses compliance deadline

REIT Ready With Builder’s Remedy for Sunnyvale Site
LoanCore Capital Credit's Mark Finerman; proposed builder's remedy project in Sunnyvale (KTGY, Getty)

An East Coast investor waits in the wings with plans for a 315-unit mix of townhomes and apartments in case the City of Sunnyvale blows a planning deadline and opens the door to builder’s remedy.

LoanCore Capital Credit REIT has filed an application for the project on a site that runs from 1230 to 1290 Oakmead Parkway in the heart of Silicon Valley, the Silicon Valley Business Journal reported.

The plans from the Greenwich, Conn.-based investor point to 16 buildings for townhomes and a five-story structure for apartments.

The property covers nearly 8 acres and is zoned for industrial use, with a 181,210 square feet that would be torn down for the new development

Sunnyvale officials have expressed confidence about meeting state requirements for plans to add housing — including affordable units — under what is known as a Housing Element. Failure to get plans approved by set timelines could trigger the legal loophole known as builder’s remedy, which essentially takes control over local zoning out of the hands of local government for projects that meet a 20 percent affordability threshold.

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Sunnyvale is currently required to come with up plans to add about12,000 residences by 2031.

LoanCore Capital’s plan includes 63 affordable units, enough to reach the 20 percent mark.

The Sunnyvale City Council is tentatively scheduled to consider adopting its Housing Element at its Dec. 12 meeting. The plan then needs approval by the state.

Other Bay Area developers want to move projects forward with builder’s remedy. Last month Acclaim Companies used the state housing loophole to file plans for 141 units at 20015 Stevens Creek Boulevard in Cupertino. In Palo Alto, Redco Development and Midar Investment want to employ the builder’s remedy for the city’s largest housing complex.

– Jerry Sullivan

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