Developer Shifts to Market-Rate Units for San Jose Project

URGENT UPDATE: A major shift is underway in downtown San Jose as developer Urban Catalyst confirms plans to construct a new 277-unit apartment building at 313 Gifford Ave—now focusing on market-rate units instead of senior housing. This decision comes amid escalating demand for multifamily housing in the area, as developers seek quicker financing solutions.

The proposed eight-story project, detailed in documents filed with city planners, reflects a growing trend in urban development where market-rate apartments are prioritized. Erik Hayden, founder and managing partner of Urban Catalyst, stated, “The type of housing that is viable for getting financing is primarily market-rate multifamily apartments.” This pivot not only aims to meet urgent housing needs but also addresses financial viability in an increasingly challenging market.

Just last month, Urban Catalyst secured a substantial $112.5 million construction loan to finance a separate 278-unit complex located at the corner of West San Carlos Street and Josefa Street. The company has recently completed and opened a 176-room Marriott TownePlace Suites hotel at 495 West San Carlos St, showcasing its commitment to revitalizing downtown San Jose.

Hayden emphasized the pressing need for timely development: “It would be better for the community and our investors to build something sooner rather than later.” By switching to market-rate apartments, Urban Catalyst aims to respond rapidly to housing demands while navigating the complexities of financing, which has become particularly challenging for senior and affordable housing projects.

The urgency of this development resonates with many in the community, as San Jose faces a significant housing crisis. The decision to pivot towards market-rate apartments is not just a business strategy; it’s a response to the immediate needs of residents seeking affordable living spaces in a city known for its skyrocketing costs.

As Urban Catalyst moves forward, residents and stakeholders will be watching closely for updates on the project’s timeline and impact on the local housing market. The new development is poised to shape the urban landscape and provide much-needed housing options in downtown San Jose.

Stay tuned for further updates on this evolving story and the implications for San Jose’s housing landscape.