KB Home South Bay's purchase of a parcel at 1655 Berryessa Road has quietly flipped the switch on the first buildout of a long-planned, transit-oriented neighborhood next to the Berryessa BART station. Developers say the roughly 13-acre site is expected to yield more than 600 homes when fully built, combining market-rate apartments, a large below-market-rate apartment building, and a small pocket of for-sale houses and townhomes. The new neighborhood will connect to an existing cluster of shops and the Market Park retail center, which is a short walk from the station.
As reported by The Mercury News, documents filed with the Santa Clara County recorder show KB Home South Bay paid about $9.4 million for the parcel at 1655 Berryessa Road. The paper described the purchase as a key step toward a project that could yield more than 600 residences across the 13-acre property, and framed the KB Home transaction as the moment the site shifts from years of planning into on-the-ground work.
Developers, unit mix and who is building what
Project pages and recent coverage break the master plan into several key components: roughly 260 below-market apartments, about 338 market-rate rental units, and 48 for-sale residences. SF YIMBY reports the affordable block is slated for development by Swenson, while KB Home will handle the for-sale neighborhood. City permitting records show the initial phase includes 24 detached single-family homes and 24 attached townhome units, mirroring the master plan approved for the site.
KB Home's for-sale phase and timing
KB Home has already begun on-site work, including demolitions, grading, and underground utility installations, and the builder's purchase was documented in local records, signaling that the for-sale phase is moving ahead. According to The Mercury News, the company could make the first homes available in 2027, depending on how permitting and infrastructure timelines unfold. Model-home openings and sales schedules will be set after final entitlements and inspections are complete.
Transit and retail context
The parcel sits a short walk from Market Park, the shopping center anchored by Safeway and CVS that opened near the station, providing new residents with immediate grocery and retail options. Leasing materials and developer releases describe Market Park as integrated with the transit village surrounding Berryessa BART, according to Borelli Investment Company. Local reporting also notes the site benefits from proximity to Berryessa/North San Jose BART, currently San Jose's only BART station, which is part of why planners advocate higher densities here, per San José Spotlight.
Permits, approvals and what is next
City project pages list several active permits and entitlements for the site, and a prior Planned Development permit established the overall master plan and phase-one scope. Those records show that tentative maps and subdivision filings are still under review, even as grading and infrastructure work continue, meaning construction on streets and utilities will often precede full vertical construction across different blocks. For details on the permit list and document history, see the city's project page on the development.
For neighbors, the project will mean years of construction, along with a steady flow of new housing options near transit, including a substantial block of affordable apartments. Coverage will be updated as developers publish sales calendars and the city posts final building permits.
