Pacific West Builders has secured $125.6 million in construction financing to build 173 affordable apartments in west San Jose, after buying the approved site for $3.5 million.
The contracting arm of Idaho-based Pacific West Communities secured the funds from a state bond and three bank loans after an affiliate bought the lot inside a larger retail village project at 4300 Stevens Creek Boulevard, the San Jose Mercury News reported.
The seller was Miramar Capital, the Los Angeles-based developer of the Stevens Creek Promenade, a mixed-use development with 580 homes. The size of the site was not disclosed.
Plans call for Pacific West to build a 173-unit affordable housing complex, including 44 studios, 37 one-bedroom and 45 two-bedroom apartments.
The firm’s total construction package is valued at $125.6 million, according to the state Housing Finance Agency, which authorized a bond to help finance the affordable homes. The cost works out to $726,000 per unit.
Citibank is providing Pacific West with $98.6 million in construction financing through two loans, while Bonneville Multifamily Capital is providing $10 million.
Pacific West expects to break ground within weeks, with completion expected in 2026.
Miramar Capital bought the 9-acre Stevens Creek Promenade project in 2020 for $54.5 million, then revamped the initial proposal. Three half-century-old office buildings will be razed for the project.
Plans for the Stevens Creek Promenade call for three apartment buildings containing 580 units, of which one building with 173 units would contain the affordable housing built by Pacific West. A 191-unit complex and a 216-unit complex will contain market-rate apartments.
The gray, white and burnt-orange complexes will have underground parking for an unspecified number of cars.
A 250-room hotel will contain 8,500 square feet of shops and 2,800 square feet of restaurants. It would also have an underground garage.
Seven years ago, San Jose declared the area an Urban Village, designed to bring 3,860 homes and 5,281 jobs to the neighborhood straddling Loma Linda and Northlake. It also dubbed Stevens Creek Promenade a signature project, not far from San Jose’s two mega malls, Westfield Valley Fair and Santana Row.
— Dana Bartholomew
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