Developer Shifts to Market-Rate Apartments for San Jose Project

URGENT UPDATE: A significant shift is taking place in downtown San Jose as developer Urban Catalyst announces a pivot from senior housing to market-rate apartments for a major residential project. The proposed 277-unit building, set to rise at 313 Gifford Avenue, is now focused on fulfilling the demand for multifamily living spaces in a rapidly evolving urban landscape.

According to Erik Hayden, founder and managing partner of Urban Catalyst, the decision comes as financing options for senior housing remain challenging. “The type of housing that is viable for getting financing is primarily market-rate multifamily apartments,” Hayden stated. This strategic move reflects a broader trend among developers facing hurdles in securing funds for senior, student, and affordable housing projects.

The eight-story structure will provide a timely boost to the local housing market, which is desperately in need of more residential options. Urban Catalyst has recently experienced success in its downtown endeavors, evidenced by an affiliate securing a $112.5 million construction loan in August 2023 for another apartment complex located at the intersection of West San Carlos Street and Josefa Street.

Hayden emphasized the urgency of the project, stating, “It would be better for the community and our investors to build something sooner rather than later.” The shift not only signifies a response to current market demands but also aims to expedite the delivery of housing in a region grappling with affordability issues.

This new development is part of Urban Catalyst’s broader strategy to enhance downtown San Jose, which also includes the recent completion of a 176-room Marriott TownePlace Suites hotel at 495 West San Carlos St.. As the city continues to grow, the need for diverse housing options becomes increasingly critical.

Residents and city officials are keenly watching this development, as it not only promises to address housing shortages but also aims to revitalize the downtown area. The construction of market-rate apartments is expected to attract a diverse population, boosting local businesses and contributing to the economic resurgence of San Jose.

With construction plans now underway, the community can anticipate a transformative addition to the skyline, providing essential housing options for current and future residents. Keep an eye on this developing story as more details emerge about the timeline and specific features of the project.