The developer of a 100% affordable housing project at a city landmark in San Jose’s SoFA District once slated for luxury apartments hopes to begin construction in February 2026.
The Core Companies has pivoted from the 25-story, 300-unit Gateway Tower project the city initially approved in 2016. It is now proposing a more compact 15-story, 220-unit version of the development located at 470 S. Market St. that also pays homage to Charles “Doc” Herrold, a pioneer of broadcast radio.
“The project really is only going through minor changes,” land-use consultant Erik Schoennauer said. “Esthetically, it’s very similar to the previous project, with one of the cornerstone objectives of protecting, preserving and incorporating the historic storefronts into the new building.”
Along with providing nearly 3,800 square feet of commercial space, the revised project has proposed a mix of 39 studios, two manager’s units and 107 one-bedroom and 72 two-bedroom apartments, all of whose rents will qualify as below market rate.
Eighty-five apartments will be available to households earning 30% of the area median income, which currently translates to $968 per month for a studio and $1,244 for a two-bedroom apartment.
The housing project will also offer 36 and 72 units at 50% and 60% area median income respectively.
The remaining 25 apartments will be reserved for households earning 70% of the area median income, with the highest estimated rent at $1,244 for a studio and $2,903 for a two-bedroom apartment.
Schoennauer said that changing the project to an entirely affordable development serves two key objectives to the city: adding more affordable housing and providing a path forward to securing capital that will allow the project to be built.
He noted that building the project would take approximately 20 months, meaning that tenants could move in around December 2027 if the development moves forward as planned.
The ability of Core Companies to make the project viable again comes at a time when San Jose has struggled to get shovels into the ground for multi-family housing developments.
Over the past few years, the city has averaged one new multi-family housing development beginning construction per year. However, in 2024, San Jose saw zero new construction starts for projects over 20 units, prompting the city to approve a temporary incentive program last week to waive some construction and building taxes for projects entitled before 2023 that obtain permits in the coming years.
The city must plan for 62,200 additional units by 2031 to satisfy the regional housing needs assessment. According to an annual report on the general plan, the city only added 2,666 units during the last fiscal year.
The SoFA District, in particular, has several major housing projects proposed that could help chip away at those figures.
Nearby, the first residents moved into a 23-story, 336-unit housing tower called The Fay over the weekend.
Once the city completes its project and environmental reviews, the historic landmark commission will have the opportunity to weigh-in. If there are no new significant impacts, the final decision will be made at a future planning director’s hearing.
At a community meeting last week, the Gateway Tower project mainly received praise from residents and preservationists. The biggest concern raised was the limited parking — 89 spots — the building would offer despite its size.
However, planning officials and the developers’ representatives noted that city rules did not require the project to offer parking.
“Although the city code says that we can have zero parking spots where we’re planning for 89 parking spots, we believe because this is affordable housing and substantially lower incomes, that there will be more reliance on public transit and less reliance on individually owned vehicles so we’re comfortable as investors that this will work,” Schoennauer said.
Preservationists also lauded the developer’s plans for a historic display showing the legacy of broadcast radio and Herrold, who is credited with sending out the first regular entertainment broadcasts from his station at the Garden City Bank building in San Jose. Herrold also received the license for the KQW station, which later became known as KCBS.
“This is a breath of fresh air,” Preservation Action Council of San Jose President Mike Sodergren said. “Often when we’re dealing with a historical element, it’s not for something that is really getting at the biggest need, and clearly, affordable housing is a huge need right now, so we applaud (The CORE Companies) for that.”