Developer Shifts to Market-Rate Apartments in San Jose Project

URGENT UPDATE: A major shift is underway in downtown San Jose as a developer announces plans to construct a new 277-unit apartment building at 313 Gifford Avenue. The project, which was originally slated for senior housing, will now focus on market-rate apartments, reflecting a growing trend towards multifamily living in the area.

The eight-story development, confirmed by Erik Hayden, founder and managing partner of Urban Catalyst, is designed to meet the urgent demand for housing in the bustling downtown district. “The type of housing that is viable for getting financing is primarily market-rate multifamily apartments,” Hayden stated. This shift comes as developers face increasing challenges securing funding for senior and affordable housing options.

Urban Catalyst has been making significant strides in the region, recently securing a $112.5 million construction loan for a new 278-unit apartment complex at West San Carlos Street and Josefa Street. Earlier this year, the firm also completed the 176-room Marriott TownePlace Suites hotel at 495 West San Carlos St., showcasing their commitment to revitalizing downtown.

The decision to pivot from senior housing to market-rate apartments is not only a financial strategy but also reflects the pressing need for housing solutions that can be delivered swiftly. “It would be better for the community and our investors to build something sooner rather than later,” Hayden emphasized.

As San Jose continues to grapple with a housing shortage, this new development could play a crucial role in addressing community needs. With construction expected to commence shortly, local residents and prospective renters are watching closely for updates.

Stay tuned for further developments on this rapidly unfolding story as Urban Catalyst prepares to break ground on what promises to be a transformative addition to downtown San Jose.