San Jose's downtown skyline is gearing up for a new addition as construction for Aquino, an eight-story apartment complex, is set to commence on Wednesday. The structure at 498 West San Carlos Street will offer 278 residential units, with 14 set aside as deed-restricted affordable housing for very low-income households, SF YIMBY reports. Urban Catalyst, a San Jose-based developer, is behind the project, which aims to address cramming more housing into the city's growing urban core.
With its eclectic blueprint penned by BDE Architecture, the building is to feature a "barcode-inspired" exterior with an assortment of private balconies and curved corner windows. As approved by the city, Aquino will include parking for 167 cars and 88 bicycles, plus a community room at the ground level for residents to congregate. Urban Catalyst's founder and managing partner, Erik Hayden, alluded to a potential surge in the city's apartment development, remarking, "we may be at the start of the next cycle of apartment development," according to an interview with SF YIMBY.
Funding for the development comes from a recently secured $112.5 million construction loan, as documented in filings at the Santa Clara County Recorder’s Office on August 26. The project's total cost is projected to reach $135 million, with Swenson appointed as the general contractor. Despite high current interest rates, Hayden revealed that "the construction financing market is starting to come back," as detailed in a Silicon Valley interview. He added that overall development expenses have risen by about 10%, emphasizing the impact of sustained price elevation in construction materials and labor.
Urban Catalyst is no stranger to San Jose's redevelopment wave, having recently completed the Marriott TownePlace Suites hotel just across the street from Aquino. Notably, their influence in reshaping downtown San Jose is significant, with several proposed projects. According to the same Silicon Valley publication, Hayden sees a trend starting to develop in the apartment market, and assumes that with potential drops in interest rates, more real estate projects could swiftly move from planning to breaking ground.
The proximity of the Aquino complex to Diridon Station and downtown San Jose adds to its appeal, potentially offering residents a convenient five-minute bus or bicycle ride to the city's heart.
