SAN JOSE — A midrise affordable apartment complex is set to replace a surface parking lot in downtown San Jose, updated city plans show.
At 143 South Third St., the project would produce 173 homes on a 1.3-acre parcel near Paseo de San Antonio and adjacent to the Hammer Theatre Center.
Bird’s-eye view of a 1.3-acre surface parking lot in downtown San Jose between South Second Street and South Third Street near the Paseo de San Antonio, as shown within the outline. The Hammer Theatre Center is visible in the lower right of the image. (Google Maps)
The Sobrato Organization, in an alliance with a unit of The Pacific Companies, is seeking to build the seven-story development. Five stories would be apartments perched atop a two-story parking structure, new plans show.
Sobrato has owned the surface parking lot since around 2010.
A midrise development could be more viable, said Bob Staedler, principal executive with land-use consultancy Silicon Valley Synergy.
“San Jose has spent years talking about towers, yet very few residential high-rises have actually been delivered over the last two decades,” Staedler said. “If the goal is housing production, especially affordable housing, the city should focus less on height and more on achievable density.”
Of the 173 units, 171 would be affordable, and two would be market-rate for on-site managers.
The filing by Pacific West Communities and Sobrato states the project will be 100% affordable. Units will be rented to people in three income levels, according to the proposal.
Plans show 17 units will be rented to those in extremely low-income brackets, 17 to people at very low-income levels, and 137 to others with low incomes.
In Santa Clara County, an extremely low-median income would be $42,200 for one person and $60,250 for a household of four. A very low-median income would be $70,350 for one person and $100,450 for a four-person household. A low-median income would be $111,700 for one person and $159,550 for a household of four. The figures are based on a 2025 report by the state Housing and Community Development Department.
The proposal is in its preliminary stages and could be altered as the city’s review process proceeds.
Sobrato and Pacific West Communities stated in the proposal that they intend to use provisions of Senate Bill 330, a state law that was crafted to streamline local planning reviews, especially for affordable housing.
The apartment complex is expected to have a central courtyard. A pool is not referenced in plans the city sent to this news organization.
Sites for a lounge and event center, along with a reading room, are also cited in the preliminary proposal on file at San Jose City Hall.