A nearly 10-acre office park in North San Jose is about to trade cubicles for condos, as an ownership group led by homebuilder Risewell Homes moves to buy the campus and push forward a long-discussed 737-unit housing project. The plan calls for tearing down three research and office buildings and replacing them with a mix of for-sale townhomes and two apartment buildings, including both market-rate and affordable units. Even with the land deal in motion, the developers say they still have to lock in a construction loan, and the exact construction schedule remains up in the air.
Who bought the site and for how much
According to The Mercury News, the buyer group includes affiliates tied to New York investment firms TPG and Angelo Gordon, and they are paying about $45 million for the property. Irvine-based homebuilder Risewell Homes is part of the ownership team and is expected to take the lead on selling the homes once they are built. State environmental filings list Valley Oak Partners as the project applicant, underscoring the San Jose developer's role in steering the proposal through the city's review process.
What the plan calls for
City project documents describe a full scrape of the existing campus, including demolition of roughly 164,600 square feet of office space across about 9.82 acres. In its place, the approved plans allow for 737 new homes: 100 for-sale townhomes, a five-story affordable apartment building with 132 units, and a seven-story market-rate apartment building with 505 units, along with structured parking and new open space. The environmental review notes that clearing the site for housing will remove existing surface parking and result in the loss of several on-site trees.
Price, history, and local market
The roughly $45 million sale price comes in below the $52.1 million that American River Capital paid for the same office campus in 2014, a sign of how values for aging office properties have slid in the current market. The Real Deal reported that the earlier sale, along with the developer's initial filings for the housing project. The pricing gap helps explain why investors and builders are increasingly looking at full-scale redevelopment, as older office parks across North San Jose are eyed for conversion into large housing complexes.
Timeline and next steps
Previous coverage and city permit materials had suggested that construction on the townhomes could start in late 2026, followed by the two apartment buildings in later phases. Those dates, highlighted in reporting from SF YIMBY, were always framed as projections that depended on financing and overall market conditions, and they were drawn up before the current ownership deal came together. With the new buyers still working to assemble construction capital, the near-term to-do list includes securing financing, finalizing the project's phasing, and filing the detailed building permit applications needed to break ground.
If the development proceeds as currently approved, it would add a major new cluster of apartments and townhomes next to River Oaks Park and other recent projects, continuing the wave of residential infill reshaping this slice of North San Jose. Public records and the environmental review outline a series of remaining public hearings and approvals that the new ownership group will have to navigate before the office park fully gives way to housing.
