SAN JOSE — A housing development that would create a new neighborhood in San Jose has landed a key construction loan that will help a big chunk of the project push forward.
The Hanover Co., acting through an affiliate, has bought a site where the veteran real estate firm aims to develop a big apartment complex in north San Jose.
A 397-unit apartment complex at the corner of Montague Expressway and Seely Avenue in north San Jose, concept. (KTGY Architecture + Planning)
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This deal is the latest in a series of property transactions and construction projects that ultimately would produce a brand-new neighborhood in San Jose with an estimated 1,472 homes.
Hanover Co. paid about $2 million for a site at the corner of Montague Expressway and Seely Avenue, documents filed on Feb. 13 with the Santa Clara County Recorder’s Office show.
At the time of the property purchase, Hanover also landed a $120.4 million construction loan from JPMorgan Chase, one of the nation’s largest banks.
Site plans for the development show that the just-purchased property is slated to become the site of a 397-unit apartment complex with about 6,500 square feet of ground-floor retail.
Yet while this by itself would be a large residential development, the new apartment building would be just one piece of a vast mosaic that has begun to emerge at 2620 Seely Avenue in San Jose.
“This is a completely new neighborhood with market-rate apartments, affordable apartments, for-sale townhomes, neighborhood retail, and a new city park,” said Erik Schoennauer, a principal executive with Schoennauer Co., a land-use consultant for the development.
Here are the primary components of what would be developed on the north San Jose site, according to Schoennaeur:
— 154 townhomes by SummerHill Homes
— 178 affordable units developed by The Pacific Cos.
— 1,140 apartments developed by Hanover, including 57 inclusionary affordable units
— 19,000 square feet of neighborhood retail
— a city park totaling 2.5 acres
The Sakauye Farm site at 2620 Seely Ave. will be preserved. Eventually, the house that marked one of the focal points of the Sakauye Family’s decades of farming in the development site will be moved to History Park in San Jose, according to Schoennauer.
Some grading work has already begun on the property to prepare sites that eventually would produce the new neighborhood.
The 22.2-acre development is located in a section of north San Jose that is dotted with numerous tech campuses and is one of the Bay Area’s largest technology hubs.
