A Parking Lot Beside Hammer Theatre Moves Toward 168 Affordable Homes

Planning Director Christopher Burton is scheduled to hear a seven-story affordable project on September 3 that would replace a 1.3-acre surface lot between South Second and South Third streets, just south of East San Fernando. The Sobrato Organization owns the asphalt. Pacific West Communities would build. AO drew the plans. The site sits next to San Jose State’s Hammer Theatre Center and across from the San Antonio light-rail stop, which is the whole point of putting housing here instead of another decade of empty spaces after the last show lets out.

Staff have recommended approval. Under the state’s Density Bonus Law the current count is 168 apartments: 33 reserved for very-low-income households, 133 for low-income households, and two market-rate manager units. Earlier filings this spring described 173 homes with a slightly different mix, including extremely-low-income apartments. Numbers often shift as drawings harden. What has not shifted is the claim that nearly every door would be deed-restricted. Sobrato held this lot since about 2010 and once floated a 24-story, 393-unit market tower that never left the page. The new version is shorter, cheaper to finance, and aimed at people who already work or study within walking distance of Paseo de San Antonio.

San Jose’s state housing assignment for 2023 through 2031 is 62,200 units. Council spent recent weeks arguing about whether denser housing should spread into more neighborhoods. This parcel does not need that debate. It already sits in the core, next to a campus, a theater, restaurants, and a train. Residents would not need a car to reach a job on Santa Clara Street or a class on campus. They would need the project to survive financing after the director’s stamp.

Pacific West has become a regular partner on below-market work around Northern California. Sobrato, long an office landlord, has been steering more of its land toward housing. Neither fact guarantees a groundbreaking. An approval on September 3 would still leave tax credits, construction costs, and a construction schedule. The useful test for Downtown San Jose is whether a parking lot that has sat idle beside a university theater finally turns into addresses instead of another rendering.

Source: Silicon Valley Business Journal\