SAN JOSE — Preliminary construction work is due to start within days on an affordable housing tower in downtown San Jose’s SoFA district now that the project’s development group has landed all the financing it needs to build.
On a site bordered by Market Street, William Street and First Street, Gateway Tower is expected to include 220 apartments, with 218 set aside as affordable and two as market-rate residences for property managers.
San Jose-based real estate firm The Core Cos. has teamed up with nonprofit Affordable Housing CDC through a joint venture to develop the 15-story tower.
“After nearly two decades of vision and persistence, Gateway Tower is poised to help shape the future of downtown San Jose,” said Chris Neale, president of Core Cos.
The project has landed all of its final stacks of financing. JPMorgan Chase, the city of San Jose, Santa Clara County and California have all provided the tower with development loans, real estate documents filed on Oct. 14 show.
The project’s total development cost is expected to be $197.8 million, the state Housing Finance Authority estimated. That equates to a cost of just over $899,100 per unit.
“Closing financing on the project is a major and long-awaited milestone that reflects the strength of our partnerships,” Neale said.
The affordable units are slated to be restricted to renters who make between 30% and 70% of the Santa Clara County median income, as calculated by the state Housing and Community Development Department.
As of mid-2026, the area median income for the South Bay was $143,850 for one person and $205,500 for a four-person household. This means the income limits would range from $43,155 to $100,695 for one person, and from $61,650 to $143,850 for a four-person household.
The tower will contain a mix of studios and one-, two-, and three-bedroom units, the state agency reported.
The development is set to include 3,300 square feet of ground-floor commercial space. San Jose Jazz Co. is expected to be one of the commercial tenants.
The most recent tower to be completed in downtown San Jose was The Fay residential high-rise, which opened to tenants in 2024.
The Gateway Tower could be completed by 2029.
The residential hub is expected to deliver “high-quality, affordable homes for San Jose’s downtown workforce, especially artists, musicians, and those who make the SoFA District thrive,” Neale said.
Gateway Tower, a 15-story, 220-unit affordable housing development at 470 South Market Street in downtown San Jose, concept. (DLR Group)