SAN JOSE—Late last week, Urban Catalyst, an Opportunity Zone fund focused on ground-up development projects in Silicon Valley, filed a conditional and special use permit for a senior living project, Delmas, in the downtown San Jose Opportunity Zone. This is its fourth project submittal in less than a week.
"With the aging Baby Boomer population, downtown San Jose needs this type of facility so our elderly residents can age gracefully," Erik Hayden, founder of Urban Catalyst, tells GlobeSt.com. "Delmas is the first senior housing project that incorporates assisted living and memory care to be built in the downtown corridor in more than 35 years. We're forging ahead on schedule, along with three other projects we announced last week, and we don't intend to slow down."
Delmas, which was designed by AEDIS Architects in coordination with Lenity Architecture, will include a mix of 117 assisted living units and 50 memory care units. The project's location at West San Carlos Street and Gifford Avenue will provide access to downtown San Jose's amenities and activities.
"We partnered with Urban Catalyst last year because we share a vision to make the center of Silicon Valley the place where people want to live and congregate," said Thang Do, CEO of AEDIS. "We are here together, nine months later and in the midst of a pandemic, and we're still on track to create the San Jose of tomorrow."
In the past week, Urban Catalyst submitted permit packages for three additional Opportunity Zone projects in downtown San Jose:
- The Mark, a 222-unit student housing project located a half block from San Jose State University.
- Madera, a 157-unit multifamily building in downtown San Jose located near the Diridon Station.
- Paseo, a transit-friendly mixed-used complex featuring office space and ground-floor retail.
The senior housing market exhibited greater strength prior to COVID-19 with approximately $1.3 billion in transactions in February, according to a report by Marcus & Millichap. Sales volume during the trailing 12-month period ended in the same month was up 18% from the prior stretch, lifted by healthy investor perceptions and attractive acquisition targets. Asset values have remained stable amid greater uncertainty as a deep pool of buyers continues to focus on the sector. REITs are eyeing new construction as large portfolio deals have slowed in the market, while private buyers now comprise a greater share of deal flow, says the report.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
