Construction crews have broken ground on 501 apartments at ELCO Yards in downtown Redwood City, marking the final major phase of a six-block redevelopment that is converting former auto dealership lots and surface parking into a dense, transit-oriented neighborhood. The two-building residential project, split between 1555 El Camino Real and 113 Beech Street, is slated for delivery in 2029.
The groundbreaking was announced by developer High Street Residential, the multifamily subsidiary of Trammell Crow Company, and investment partner Barings, according to Yield PRO. Adam Voelker, market leader of Trammell Crow Company's Northern California office, said the project reflects confidence in the Peninsula market and a commitment to delivering high-quality housing where it is most needed, describing Redwood City as a growing jobs center with excellent community amenities. The first building at 1555 El Camino Real will hold 252 units averaging 751 square feet along with 5,277 square feet of ground-floor retail, while the second building at 113 Beech Street will add 249 units averaging 787 square feet.
Across both buildings, the project will offer a mix of studios to three-bedroom units, with a portion of all units reserved as affordable housing. WRNS Studio, which designed the residential buildings as well as ELCO Yards' completed commercial phase, has laid out the overall residential unit mix as 128 studios, 279 one-bedroom units, 71 two-bedroom units, and 23 three-bedroom units across the two structures. SBI Builders will handle construction of both residential buildings.
From Car Lots to Life Sciences Hub
The 8.3-acre ELCO Yards site sits adjacent to the Caltrain corridor in central Redwood City and was previously occupied largely by auto dealerships and surface parking, according to Capdex. The commercial side of the master plan moved first: life sciences developer IQHQ secured a $581 million construction loan from KKR in October 2022 to fund more than 600,000 square feet of office and research space, built on spec before major tenants signed on, per a report from Reddit citing The Real Deal.
That bet paid off. The office and life sciences portion has since been delivered and is already 50% leased, per the same Yield PRO account. The Chan Zuckerberg Initiative signed a 224,000-square-foot lease in February 2025 to anchor its biomedical research and AI-driven scientific operations at the site. Law firm Orrick also leased 65,000 square feet at the development. Hoodline previously covered CZI's full-building lease when it was first finalized.
Barings Expands Its Peninsula Bet
David Otte, managing director at Barings Real Estate, said the firm is expanding its relationship with Trammell Crow Company through the ELCO Yards project. Barings typically invests in multifamily communities in established suburban locations that offer walkability and convenient transit access, Otte said, adding that ELCO Yards is well-positioned to serve long-term housing needs in Redwood City given its transit access, favorable demographics, and rent-to-income dynamics.
Both residential buildings are designed to lean into that transit-oriented pitch, with rooftop decks and lounges, clubrooms, resort-style pools, spas, covered parking, and coworking space. Units will include smart appliances and high-quality finishes, and both communities will have immediate access to green space along with views of Redwood City and the Santa Cruz Mountains.
Affordable Housing Requirements Shift Over Time
Affordable housing has been woven into the ELCO Yards master plan from the start, though the specifics have evolved. A six-story, 39-unit affordable apartment building called Miramontes was completed off-site at 1304 El Camino Real in late 2023 as part of the project's early entitlements, according to Walking Redwood City. More recently, Redwood City officials revised the affordable housing obligations tied to the main ELCO Yards site in November 2025, adjusting the specific income-level allocations for low- and very-low-income households, per Capdex's reporting on the project.
The housing phase arrives as Redwood City works to meet state-mandated housing targets. Under California's sixth-cycle Regional Housing Needs Allocation covering 2023 to 2031, the city must plan for 4,588 total new housing units, including 1,115 designated for extremely low- and very low-income households, according to the city's RHNA submittal. Redwood City adopted its 2023–2031 Housing Element in February 2023, becoming the first municipality in San Mateo County to win state certification for its eight-year housing strategy.
A High-Cost Market Driving Demand
The push for new housing supply comes against a backdrop of steep rental costs. As of October, the average monthly apartment rent in Redwood City reached roughly $3,700, a 13.1% increase over the past year and 99% above the U.S. national average rent, according to Zumper. That pricing pressure underscores why transit-adjacent, mixed-income projects like ELCO Yards carry weight beyond their immediate footprint.
High Street Residential brings a deep track record to the project, having built roughly 18,500 multifamily units valued at $5.7 billion over two decades and currently maintaining a pipeline of 14,700 units, per Trammell Crow Company. ELCO Yards' residential phase is expected to round out a master plan that will ultimately integrate childcare, restaurants, parks, plazas, and public art alongside its housing and lab space, with delivery targeted for 2029.
