SAN JOSE — An affordable housing complex in downtown San Jose that would replace a surface parking lot with more than 100 apartments received final approval from city officials.
Planning administrators approved on Sept. 2 the development of a seven-story, 168-unit apartment building at 143 South Third St., near East San Fernando Street and the Hammer Theatre Center.
An alliance of the Sobrato Organization and a unit of Pacific Companies proposed the project, documents on file with city planners show, which would consist of five levels of apartments on top of a five-story parking garage near a light rail station.
“The project will add to the existing housing diversity in the surrounding neighborhood, which includes a variety of multifamily developments,” city planners stated in a report. “The project would result in a high level of development on the subject site, consistent with the General Plan’s major strategy and policies that support focused growth and development near transit.”
Of the 168 apartments, 133 would be rented to low-income households and 33 would be rented to very-low-income households. Two units would be market-rate manager units, according to planning documents.
In Santa Clara County, a very-low median income would be $71,950 for one person and $102,750 for a four-person household. A low median income would be $113,700 for one person and $162,400 for a household of four. The figures are based on a 2026 report by the state Housing and Community Development Department.
Sobrato Organization and Pacific Companies are looking to use extended construction hours to speed up the development timeline, with the project slated to be completed in two years. A potential date to break ground wasn’t immediately known.
During the Sept. 2 meeting, some residents expressed concern about a 7 a.m. start time for construction on some Saturdays. Multiple late-night venues are in the vicinity, including bars, restaurants, and nightclubs.
Some residents urged the developer to create a lively section of the building that faces along The Paseo de San Antonio. Lauren Alexander, a project manager with Pacific West Communities, said the development would address those concerns.
“We are looking at ways we can activate the side of the building along the Paseo de San Antonio,” Alexander said. “We would have artwork along that side, possibly a rotating gallery of artists.”
Seven-story affordable housing development at 143 South Third Street in downtown San Jose, concept. (AO)