A 38-acre business park along Tasman Drive in Milpitas is in line for a major overhaul, with developer Toll Brothers proposing to replace it with Murphy Village, a community of nearly 800 homes mixing apartments, townhomes and detached houses. The site sits near Coyote Creek and the San Jose city border, and environmental review on the project is just getting underway.
The redevelopment would turn the 38-acre business park into 791 residential units, according to San Francisco YIMBY. The breakdown includes a five-story apartment complex with 236 units, 381 townhomes and 174 single-family detached homes, per the same outlet's reporting. Toll Brothers is listed as the project sponsor, though no architect has been identified for the development.
What the Plans Show So Far
Beyond housing, the project description includes parks, paseos and open space woven throughout the site, with private open spaces spread across 300 lots. Amenities are expected to include a community park, outdoor dining areas and a bicycle maintenance paddock, the report notes. A potential 3,000-square-foot retail space is also part of the concept, envisioned as a possible home for a cafe, wine bar, bookstore or food-truck vending area.
The apartment portion of Murphy Village is designed with a podium-top courtyard and entry plaza, according to the same account. Specific tenants, financing details or an affordability breakdown for the project have not been disclosed.
Milpitas Takes the Lead on Environmental Review
A City of Milpitas notice for the separate 1000 Gibraltar Drive Project identifies the city as the CEQA lead agency preparing a Draft EIR for that project. The city has indicated it will accept public comments to help inform that review. Separate city guidance states that comments on the scope and content of a Draft EIR should, at minimum, identify significant environmental issues the review should address.
Timelines released alongside the project describe construction starting in late 2028, with completion estimated as early as 2032 — projections rather than confirmed dates. The city has previously described its broader commitment to producing and preserving housing across income levels and densities in its Housing Element.
How It Compares to Other South Bay Projects
Murphy Village isn't the only major housing push reshaping underused commercial land nearby. In Santa Clara, a Builder's Remedy application for another 38-acre parcel proposed 584 units, including 120 affordable apartments, 416 townhomes and 48 single-family dwellings, according to the City of Santa Clara. And in Menlo Park, the SRI Campus redevelopment's draft environmental review detailed a high-density option of 800 housing units across three apartment buildings, up from an initial plan of 550 units, as reported by San Francisco YIMBY.
Closer to home, Santa Clara also recently celebrated the start of construction on Parkside, a market-rate apartment community built in a former industrial park and expected to open in fall 2028, according to San José Spotlight. Taken together, the projects reflect a broader regional pattern of converting aging business and industrial parks into residential neighborhoods across the South Bay.
