SAN JOSE — A big apartment complex in east San Jose that could produce hundreds of residences has taken a big step forward now that the developer has landed a construction loan to build the project.
The housing development would be located at 905 and 907 North Capitol Avenue near the interchange of Interstate 680 and Berryessa Avenue in San Jose, according to Santa Clara County property documents.
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Hanover Co., a veteran real estate company, owns the project site and is developing an apartment complex with 345 residential units, documents filed on March 20 with the Santa Clara County Recorder’s Office show.
The apartments will consist of 328 market-rate units and 17 affordable housing units, the public real estate documents state.
Citizens Bank provided Hanover Co. with a construction loan totaling $87.4 million, according to the property, records.
A prior decision by San Jose officials to reduce development fees in the city has helped bolster efforts to produce housing in the municipality, including the North Capitol project.
“With the City Council action to reduce fees, the financing is secured and construction is beginning,” said Scott Youdall, regional development partner for the West Coast with Hanover.
Texas-based Hanover Co. is building the apartments next to 32 townhomes that Trumark Homes is developing.
The apartment building is slated to be seven stories along with an underground parking area, documents on file with San Jose city planners show.
The ground floor is expected to include about 2,900 square feet of commercial and office spaces, according to the city planning files. A leasing office totaling 500 square feet is also proposed.
The precise timeline for the project’s completion wasn’t immediately known. The Schoennauer Co., a land-use and planning consultancy, helped to steer the project through the San Jose development review process.
The project is expected to require the demolition of a single-family home, barn and greenhouse to clear the way for the project, according to city public records.
The site is down the street from the Penitencia Creek light rail stop on North Capitol Avenue and is a two-mile drive from the Berryessa BART station.
“A clubroom, courtyards, pool deck and a fitness center” are listed among the amenities for the project, according to the city planning documents.
