Affordable housing developer buys a plot of residential complex in San Jose

SAN JOSE. The site, which could build about 100 homes near downtown San Jose, was bought by a real estate development firm specializing in affordable housing.

Milestone Housing Group, acting through an affiliate, purchased two parcels of land at the corner of East Santa Clara and South 20th Streets in San Jose, according to public property records.

The newly purchased lots are at 934, 938, 942, and 948 E. Santa Clara St., county records show. The project site is in close proximity to the Olinder and Roosevelt Park areas.

Los Gatos-based Milestone Housing has offered to build 99 residential units and 2,500 square feet of retail space on the ground floor on the site, according to documents filed with San Jose planners.

Commercial property at 934, 936, 942, and 948 E. Santa Clara St. east of downtown San Jose, shown on the diagram. Boundaries are approximate. (Google Maps)

“San Jose is in desperate need of building as much affordable housing as possible,” said Bob Stadler, CEO of Silicon Valley Synergy, a land use consulting company.

A subsidiary of Milestone Housing Group paid a total of $5.1 million for two lots on the lot, Santa Clara County property records recorded in late April on two different days show.

The site, which contains a retail building with businesses such as a bridal shop, tailor shop and beauty salon at addresses 942 to 948 E. Santa Clara St., was purchased for $3.4 million.

Pacific Auto Body & Paint store building at 934–936 E. Santa Clara St. was purchased for $1.7 million.

Together, the two lots add up to about 0.4 acres, according to San Jose planning documents.

The new property owner specializes in affordable housing, according to the company’s website.

“The mission of Milestone Housing is to create and maintain high quality, safe and affordable housing,” the company’s website says. “Creating housing stability creates a solid foundation for our residents, allowing them to focus on improving their lives.”

The developer did not respond to email and phone requests for comment on the deal and offer.

Milestone has developed three residential projects in San Jose and one residential project in each of the following cities: Livermore, Santa Cruz, San Luis Obispo, Los Angeles and San Diego, according to the firm’s website.

“We produce housing for individuals and families with a variety of needs, including permanent housing for the homeless, veterans and people with disabilities, as well as traditional housing for families and seniors,” Milestone said in a statement.

Milestone also received $4.8 million in funding from the Enterprise Community Loan Fund, a non-profit organization that specializes in affordable housing finance, at the time of the company’s real estate purchase.

“This deal continues the Santa Clara Street development model between Coyote Creek and Highway 101,” Stadler said. “We’ll see how long it takes them to get funding and start building.”