Studio housing eyed near downtown San Jose

SAN JOSE — A developer whose expertise includes affordable housing has proposed the development of several hundred studio units on a choice site near downtown San Jose and alongside Interstate 280.

The project, with a working title of Virginia Studios, is being planned for a 1.2-acre property at 295 E. Virginia St. near the corner of South Seventh Street, according to documents on file with San Jose city planners.

“We think this is a good project because there is a housing crisis in San Jose,” said Alexis Gevorgian, principal executive with AMG & Associates, a land development firm that specializes in both affordable and market-rate homes.

A total of 347 studio units would be built on the site, according to city planning documents. At present, the site is a vacant lot where some trucks and other vehicles are being parked. It’s also near ramps for Interstate 280.

“We are proponents of affordable housing,” Gevorgian said. When asked whether AMG has determined a potential mix of affordable and market-rate units for the project, Gevorgian replied, “We don’t know yet.” He added, “It’s too early” to be certain.

Acting through an affiliate, AMG & Associates paid $3.3 million for the property, according to documents filed with Santa Clara County officials on Oct. 4.

The affiliate, San Jose Housing and Land Investors, paid cash for the site. The sellers were Amerigas Propane and Cal Gas Corp., the county documents showed.

Developers often wait until they have secured all necessary government approvals before they buy a property where a new project would rise. In this case, AMG was confident it would land the required city permits and endorsements.

“We decided to take the risk,” Gevorgian said.

AMG hopes to begin construction of the residential complex within a year, Gevorgian said. The developer isn’t sure if Virginia Studios will include ground-floor retail.

The project is about a mile away from the city’s downtown, scene of a burst of development, leasing, and investment activity that’s being fueled by a variety of factors.

Google has proposed “Downtown West,” a transit-oriented community of office buildings, homes, shops, restaurants, hotel accommodations, cultural amenities, entertainment hubs, and open spaces near the Diridon train station.

Adobe is constructing a new office tower that would dramatically expand the size of the cloud services giant’s downtown headquarters complex of three office buildings.

Stalwart developers such as Jay Paul Co., Sobrato Organization, and Boston Properties, along with upstart developers such as Urban Community and Urban Catalyst, along with iconic real estate executive Lew Wolff, collectively have launched or are actively planning projects that would bring downtown San Jose new offices, homes, and hotels.

Even if only some of the office developments are built, the Google and Adobe projects alone would be expected to intensify the demand for housing in and near downtown San Jose.

“Those are the main reasons we’re interested in this project,” Gevorgian said.

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