San Jose project secures $87.4 million construction loan

A new apartment complex in east San Jose has moved forward after securing a construction loan. The project will create hundreds of homes and is located at 905 and 907 North Capitol Avenue. The Hanover Co., a real estate firm, plans to develop 345 residential units, including 328 market-rate apartments and 17 affordable units. Citizens Bank provided an $87.4 million construction loan to support the project. San Jose city officials recently reduced development fees, which has helped make this project possible. Scott Youdall, a regional partner with Hanover, confirmed that this support allows construction to begin. The planned building will be seven stories high and include an underground parking area. It will also have about 2,900 square feet of commercial and office space on the ground floor, along with a 500-square-foot leasing office. The project will require demolishing a single-family home, a barn, and a greenhouse. It is located near public transit options, including the Penitencia Creek light rail station and the Berryessa BART station. Amenities for the complex will include a clubroom, courtyards, pool deck, and fitness center. The exact completion timeline for the apartments is not yet available.