SAN JOSE — An affordable housing tower that would produce hundreds of units in San Jose is set to break ground in early 2026 now that the project has landed all the financing that’s needed to construct the high-rise.
The 220-unit project, whose residences will all be affordable, is located at 470 South Market St. in downtown San Jose, according to The Core Cos., a Bay Area real estate firm that is leading the project’s development.
Gateway Tower, a 15-story, 220-unit affordable housing development at 470 South Market Street in downtown San Jose, concept. (DLR Group)
“Gateway Tower will not only fill an urgent need for housing, but it will also contribute to the revitalization of San Jose’s downtown area,” said Chris Neale, president of The Core Cos.
Core Cos. intends to launch construction of Gateway Tower during the January-through-March first quarter of 2026, according to Neale. A joint venture of Build Group and Core Builders will be the general contractor for the project.
“This is great to hear,” said Mark Ritchie, president of Ritchie Commercial, a San Jose-based real estate firm. “The more people you have living downtown, the more people you will have walking there. That creates activity.”
The new tower is located within the SoFA district, a lively and hip section of downtown San Jose dotted with restaurants, nightclubs, cocktail lounges and venues for live entertainment.
All 220 of the apartments will be set aside for households whose annual median incomes are 30% to 70% of the area median income. In 2025 that metric was $195,200 for a household of four people, according to information posted by the state Housing and Community Development Department. This points to income limits ranging from $58,560 to $136,640 for households of four people living in Gateway Tower.
The tower’s developer hopes the project will provide housing for teachers, health care workers and service industry employees.
The project will also develop a tenant preference program for a select number of units that will offer the right of refusal to local SoFA-based artists.
“An arts district is nothing without artists, which is why we’re excited to work with The Core Cos. to bring a 100% affordable project to the SoFA District,” San Jose Mayor Matt Mahan said.
The project landed funding from several public agency sources recently, Core Cos. stated. These included $64 million from Santa Clara County, $38 million from San Jose and $4 million from the California Housing Finance Authority.
The tower is expected to be completed during the first three months of 2028, according to Core Cos.
Ritchie said the tower will greatly benefit from its SoFA location.
“It’s a great idea to have this project in SoFA,” Ritchie said. “You have this in downtown San Jose’s arts and culture district, a place you also have live entertainment, the clubs, the theaters and the restaurants.”