Housing development near downtown San Jose’s Google village gets city OK

SAN JOSE — A big housing development near downtown San Jose’s Google village has taken a major step forward with final city approval, bringing the project much closer to reality.

The San Jose Planning Department has approved the housing development, which is slated to deliver nearly 200 homes to the city’s downtown when it is completed. The homes will be built near Google’s village, Downtown West.

Urban Catalyst intends to move quickly to build the project, which is known as Madera @ Downtown West. The project would consist of 184 residential units.

“We are in a housing crisis, and the city of San Jose has made this crisis a priority,” said Erik Hayden, founder and managing partner with San Jose-based Urban Catalyst.

The next step, following this week’s approval by the city Planning Department, is to obtain a building permit, according to the project’s developers. Hayden will submit the building permit application within two weeks.

Urban Catalyst was formed to create funds that can capitalize on tax advantages provided by opportunity zones in places such as downtown San Jose.

Hayden applauded the city’s swift approval of the development.

“This approval is great news for the community and for our investors,” Hayden said. “It is proof that the city’s process to streamline residential projects is working.”

In December, Urban Catalyst, acting through an affiliate, bought several parcels that together would provide the land needed for the project.

UC Madera Owner, the Urban Catalyst-led affiliate, purchased the sites at the corner of West San Carlos Street and Josefa Street, according to Santa Clara County documents filed on Dec. 23.

The developer paid $10.2 million for the parcels, the property documents show.

“We need residential projects so badly to meet this supply and demand crunch and to ease the housing crisis,” Hayden said.

Urban Catalyst has become a busy developer in downtown San Jose and has proposed several projects for the city’s urban core.

New housing, offices, retail, and restaurants are among the types of development products that Urban Catalyst has proposed in downtown San Jose. Hayden emphasized that housing, along with the others, will be crucial for a downtown revival.

“New housing development, a project like Madera @ Downtown West, is crucial to the revitalization of downtown San Jose,” Hayden said.