Menlo Park’s long-planned 432-home Sobrato development has been rearranged: The apartments can move ahead first, while the townhomes wait for their own construction path. The city’s Planning Commission unanimously approved the reset last Monday, giving the project a more flexible route toward construction.
As reported by The Almanac, the revised plan allows Sobrato to potentially build the 316 rental apartments and 116 for-sale townhomes on different timelines. The project would replace vacant industrial land in the Bayfront area near Meta’s Menlo Park headquarters.
Apartment Phase Moves To The Front Of The Line
The apartment portion would rise in a five-story building, while the townhomes would be placed in three-story buildings. The city says the full development also includes about 2,000 square feet of ground-floor commercial space, publicly accessible open space and a pedestrian paseo connecting the site.
According to the City of Menlo Park, the project includes 66 below-market-rate homes, including 18 for-sale townhomes, plus eight additional below-market-rate rental units tied to community benefits. The development would occupy an 8.15-acre site assembled from properties along Independence, Chrysler and Constitution drives.
Townhomes Wait For A Development Partner
Sobrato plans to proceed with the apartment building while seeking a partner experienced in for-sale townhome construction. Caroline Layden, a senior development manager for Sobrato, told commissioners that the revised phasing gives a future townhome builder more certainty while allowing the company to advance the rental portion.
The changes also allow the paseo to be completed in stages, with temporary pedestrian and emergency access provided until the townhome portion is built. A nearby property owner told The Almanac that she supports the project but wants enforceable deadlines so temporary construction conditions do not drag on indefinitely.
Silicon Valley’s Rental Market Is Helping Drive The Timing
The timing reflects a stronger rental market in Silicon Valley, where highly paid artificial-intelligence workers are adding demand while the pipeline of new apartments remains limited. The Real Deal reported that Silicon Valley apartment rents rose 6.8% year over year in July to an average asking rent of about $3,452 per month.
That market backdrop appears to be making apartments easier to advance than townhomes, whose sales prospects can shift quickly with interest rates and buyer demand. Sobrato’s split-phase strategy lets the developer pursue the part of the project that currently has the clearer path to financing and construction.
Approval Still Does Not Mean Immediate Construction
Site preparation is already underway: The city says demolition permits were filed in 2024, grading permits were issued in summer 2025 and utility work is moving across the property. A building permit for the apartment structure was submitted in September 2025 and remains under review.
The planning approval is another step, not a construction green light. The Real Deal notes that the project still requires final permits and additional city action before construction can begin, while any appeal could send the revisions to the Menlo Park City Council.
