Trumark's New $400M in Financing Progresses Northeast San Jose Townhomes Plans

Trumark's New $400M in Financing Progresses Northeast San Jose Townhomes PlansRendering by KTGY Architectures
Tony Ng
Published on May 30, 2023

San Jose's housing market plows ahead as Trumark Homes, the renowned San Ramon-based developer, has managed to secure a staggering $400 million loan to build 32 townhomes in northeast San Jose, according to a recent The Real Deal article—but that's just the tip of the iceberg, as a number of other groundbreaking housing projects are also in the pipeline.

The townhome project secured the significant line of credit from San Francisco-based Wells Fargo Bank for the massive development at 905 North Capitol Avenue, a location that includes 345 apartments proposed by Houston's Hanover Company, which fall outside the realm of the recent funding acquisition.

However, the apartment segment of this San Jose housing extravaganza is yet to break ground, as Erik Schoennauer, a land-use expert providing consulting services to the project, told the San Jose Mercury News, pointing out that construction timeline for the three-story townhomes, crafted with white, gray, and black accents by Chicago-based KTGY Architecture + Planning, is not yet known.

But all of that is just the beginning of San Jose's grand housing plans, in another part of town, developers Pacific Housing and Jemcor Development Partners have secured another gargantuan financing package worth a cool $108 million, enabling them to build The View at Blossom Hill Apartments—a seven-story, all-affordable 271-apartment housing complex on a 1.9-acre site in South San Jose, reported the San Jose Mercury News.

Located at 1007 Blossom Hill Road, this specific housing project has already been granted approval from San Jose officials, with construction expected to commence imminently and wrap up in the first half of 2025, according to Pacific Housing president Mark Wiese, via the Mercury News.

Meanwhile, the Berryessa district seems all set for a major transformation too, as the Facchino family has proposed a development plan to build over 800 homes and a commercial building near the Berryessa BART station, we reported here on Hoodline earlier this month, with the final decision on zoning expected in June, and even though the full project might take as much as five to six years to fully roll out, it could potentially set the stage for a stunning reformation of the entire Berryessa district.

What's striking about all these housing initiatives is the common aim of promoting walkable, urban village living, with proximity to transit, retail, dining, parks, and creek trails regarded as prime drivers of such developments, a philosophy that's been well articulated by land-use consultant Erik Schoennauer, quoted in an article by Mercury News.

Returning to Trumark Homes, the powerhouse developer is no stranger to ambitious projects; a year ago, it won a lengthy battle with Dublin over a plan to build 573 houses in the east Dublin hills, an initiative that was approved in May 2022 after being quashed by the city, as detailed in an article by The Real Deal, which also mentions that Trumark Homes recently acquired 30 acres in East Livermore, approved for nearly 450 homes, for a whopping $75 million.

Ultimately, these housing projects represent significant progress in San Jose's overarching objective of creating denser, more connected, and thriving urban spaces for its growing population, and they seem poised to redefine the city's landscape by nurturing the potential of urban village living as the key cornerstone of modern urban development. Still, concerns persist as questions loom over the commercial real estate market and the tech sector at large. As we reported earlier today, Google plans to offload a whopping 1.4M square feet of office space in the Bay Area, a move that could have far-reaching effects, even into the residential real estate markets.