Bay Area/ San Jose

San Jose Strip Mall Faces Wrecking Ball For 575 New Apartments

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Published on July 07, 2026
San Jose Strip Mall Faces Wrecking Ball For 575 New ApartmentsSource: Google Street View

A familiar West San Jose strip mall at 3896 Stevens Creek Boulevard is on track to be replaced by two eight-story apartment buildings, as Holland Partner Group upsizes its plans and leans into housing over offices.

The revised proposal boosts the project to 575 homes split across the pair of midrise buildings. The plan calls for roughly 13,600 square feet of street-level retail, about 25,000 square feet of amenity space, and 29 apartments reserved for very-low-income households. Parking would be trimmed to around 364 spaces, and the existing low-rise commercial buildings at the corner would be demolished to clear the site.

According to The Mercury News, the new design splits the homes between a 264-unit building facing Saratoga Avenue and a 311-unit building along Stevens Creek Boulevard. The amenity lineup includes a fitness center, co-working space, clubroom, and pool decks. The paper reports that the city has already signed off on the updated plans and that the retail mix would include about 7,600 square feet fronting Saratoga and roughly 6,000 square feet along Stevens Creek. Existing tenants, including a Hokkaido Buffet location, would be removed to make way for construction.

From Office Campus To Podium Apartments

The City of San José lists prior commercial entitlements for the 4.7-acre property, which was once approved for a large office-and-fitness complex. Updated renderings published by SFYIMBY show Holland Partner Group now pursuing a podium-style housing approach instead.

The shift reflects a broader market turn away from big office projects and toward higher-density housing, especially along transit and retail corridors. Along Stevens Creek Boulevard, surface parking lots and low-rise retail parcels are increasingly being targeted for mid-rise residential projects, and this site is part of that pattern.

Affordable Units And Income Thresholds

The application sets aside 29 apartments - about 5 percent of the total - for very-low-income households, according to The Mercury News. Eligibility will hinge on county income limits.

Santa Clara County thresholds were updated this spring by the California Department of Housing and Community Development. HCD's 2026 tables put the area median income for a four-person household at around $205,500 and the one-person figure near $143,850. Those numbers help determine who can qualify for the deed-restricted units and how the affordable rents are calculated.

What Comes Next

Before anything rises on the corner, Holland Partner Group still needs demolition and building permits. In an overview letter filed with the city, the developer writes that the design meets the intent of the Stevens Creek Urban Village plan by improving pedestrian connections and adding new public gathering spaces.

The parcel appears in city staff materials as part of San Jose's multifamily housing pipeline and could qualify for incentive programs that cut certain fees and speed up permitting. The San Jose City Council packet outlines those incentives and specifically references the site.

Neither the developer nor the city staff has released a timeline for demolition, permitting, or construction. Neighbors and nearby business owners are likely to keep a close eye on that schedule, with particular attention on traffic, loading, and what happens to the long-running corner tenants. City planners say they will post updated documents to the project's planning page as new filings come in.