SAN JOSE — A large residential complex that’s being developed in downtown San Jose near Google’s proposed transit village has landed some key financing from a unit of the tech titan.
McEvoy Apartments, a complex that’s being developed in downtown San Jose by First Community Housing, has obtained a loan from Google Endeavor LLC, a subsidiary of Google, property documents that were filed on Oct. 27 show.
The development is expected to consist of 365 residential units and will be located at 280 McEvoy St. next to West San Carlos Street, according to First Community Housing.
McEvoy Apartments will serve low-income households that earn up to 60% of the area’s median income, which works out to an annual income of $61,000 for an individual or $87,000 for a family of four.
Google Endeavor provided $29 million in financing to McEvoy Street LP, which is an affiliate of First Community Housing, loan documents filed on Oct. 27 with county officials show.
The funding is being used to refinance another mortgage as well as to provide pre-development funding for McEvoy Apartments, according to public property records.
“Google has really put their money where their mouth is,” said Geoffrey Morgan, president of First Community Housing. “They are coming through for affordable housing.”
In 2018, First Community Housing bought the 1.1-acre site where the apartments will sprout, paying $13.5 million for the property, the long-time site of a family-owned metal shop. The family that operates S&S Welding sold the property to the developer.
The apartments are slated to rise a few blocks away from a transit-oriented neighborhood called Downtown West that Google is developing next to and near the Diridon train station and the SAP Center.
“McEvoy Apartments maximizes the number of desperately needed affordable units by placing density right where we want it, near our region’s downtown transit center, within walking distance for many of our hardest working residents and families,” San Jose Mayor Sam Liccardo said in February just before the City Council approved the project.
The development is expected to feature two 12-story residential towers, which will be constructed in two phases, one building at a time.
One tower will contain 141 apartments geared towards families in one-, two-, and three-bedroom units. The other tower will provide 224 studios for working singles and couples.
“It is the quintessential transit-oriented development,” Morgan said.
The project will employ a new kind of building system that’s called mass-timber construction, which uses heavy timber in the frame of the building.
Lendlease, an Australia-based development and construction firm, will be the builder of the McEvoy Apartments. SERA Architects will design the project.
“The transit-oriented development prioritizes sustainability, vibrant placemaking, cutting-edge construction techniques, and the health and well-being of the people who will live there,” said Veronica Hinkley Reck, a principal executive with SERA Architects. “The project helps to address the state’s crucial housing needs for low-income residents.”
In 2019, coincidentally, Google announced it had teamed up with Lendlease on what’s expected to become a $15 billion development venture to dramatically transform sections of Mountain View, Sunnyvale, and downtown San Jose with new housing units.
In addition to the pair of residential towers, McEvoy Apartments will also feature rooftop gardens, a courtyard, and gathering areas.
The towers will also include a “maker space” where people can “learn, teach, and make,” Morgan said.
The location of McEvoy Apartments a short distance from the Diridon rail hub is expected to bolster the development greatly, First Community Housing said.
“The project will provide much-needed affordable homes for more than 360 households adjacent to what promises to be the grand central station of the West,” Morgan said.
