San Jose is the Third Most Costly US Rental Market

Affordable housing project, Charlotte Park, is already fully leased.

SAN JOSE—With the near completion of 200 affordable housing homes, the $46 million Charlotte Park Apartments is a case study in building an affordable residential rental community within a market-rate development. In this case, ROEM Corp. satisfied most of the affordable housing requirement of the Hitachi master-planned community and with completion slated by the end of June, Charlotte Park is already fully leased. Alex Sanchez , executive vice president of ROEM Corporation, tells GlobeSt.com: “The need for affordable housing has never been greater. San Jose is now the third most expensive rental market in the country, according to recent statistics from Zumper , an apartment rental website. ROEM has a long history of building affordable high-quality, amenity-rich homes in Silicon Valley, and is proud to have developed 2,266 affordable housing units in the city of San Jose. Through the winning combination of creative financing and partnerships with market-rate developers and public stakeholders, ROEM remains committed to building new high-quality housing for everyone.” This $46 million development with the construction and permanent financing provided by Citi is affordable to families who make 60% or less of the Santa Clara County area median income. ROEM Builders Inc. acted as both general contractor and construction manager. “While inclusionary housing policies provide a major source of funding for affordable housing, they can significantly reduce a developer’s return and create long-term obligations,” said Sanchez. “Our market-rate developer partners recognize the benefits of having ROEM act as their third-party general contractor. We assume their affordable housing obligations and pay the in-lieu fees while designing and building high-quality affordable housing that seamlessly blends with their market-rate housing. About 430 of our more than 3,000 new affordable housing units completed since 2000 were built by ROEM for a market-rate developer.” Located on the former Hitachi global storage technologies campus, Charlotte Park is part of a 295-acre master-planned community that will include condominiums, apartments, attached townhomes, many pocket parks and a large 10-acre park with a baseball field. Charlotte Park is situated near the intersection of Cottle Road and Highway 85, and within walking distance from the Blossom Hill Caltrain station, as well as the Cottle and Santa Teresa light rail stations. “Charlotte Park provides a safe haven to those who are being squeezed out of quality housing in Silicon Valley,” said Jay Abeywardena , director at Citi. “We are excited to help support this initiative and believe this project will have a meaningful impact on the community.” Charlotte Park Apartments gained an efficiency of management thanks to two other ROEM developments– Oak Grove Apartments and LEX Apartments –being constructed simultaneously within about a half-mile radius. Although these are separate projects managed by separate teams, ROEM was able to share resources from time to time because of the close proximity. “With Alliant’s investment of nearly $15 million, Charlotte Park Apartments will provide an additional 200 units of much needed safe and affordable housing to the San Jose Area,” said Brian Goldberg of Alliant Capital Ltd. “We are proud to be a partner in the development of this property and excited for the residents who will benefit from it for years to come.” With ROEM’s emphasis on sustainability, Charlotte Park will be pursuing USGBC LEED Gold certification. Because both solar thermal heating and solar photovoltaic power sources are being installed, Charlotte Park has the potential to save up to 85% on utility bills when compared to electric water heating. Per LEED standards, all apartments have high-efficiency flush toilets and faucets as well as “Evolve Roadrunner” showerheads that are thermostatically controlled. In addition, Charlotte Park integrates efficient landscape design by using native species and zero turf on a lot designed to capture and treat all stormwater. Apartments will be equipped with Energy Star refrigerators and dishwashers. Sanchez tells GlobeSt.com: “Starting in the conceptual stage, sustainable features are integrated into the design of every ROEM housing development. We’ve completed multiple high-level LEED certified buildings every year since 2009 with more pending. As another example of ROEM’s commitment to sustainability in Silicon Valley, Charlotte Park apartments joins ROEM’s recently certified LEED for Homes Platinum developments in Mountain View ( Franklin Street Family Apartments and Studio 819 Apartments ) in exceeding many of the energy performance and sustainability standards.” The four-story apartment building (with 230 parking space garage) includes a courtyard with outdoor barbecue, dining area, tot lot and lounge area; community room with media alcove, kitchen and entertainment area; storage area, homework and computer room, and laundry facilities.