Real estate firms eye 400-plus homes at San Jose office building site
Two real estate firms, SummerHill Homes and Cypress Equity Investments, plan to develop 446 mixed-density homes—373 affordable apartments and 73 market-rate townhouses—on a 5.9-acre San Jose site previously occupied by a vacant office building. The project, targeting 60% of the area median income for affordability, follows a $18.5 million purchase by LBA Realty, which paid below assessed value amid a weak office market.
Two real estate firms are converting a vacant office building in San Jose into a mixed-density residential development. SummerHill Homes and Cypress Equity Investments announced plans to build 446 units at 3550 N. First St., including 373 affordable apartments and 73 market-rate townhouse condominiums. The 5.9-acre site, purchased by LBA Realty for $18.5 million in February 2025, sits near the Tasman light rail station. The purchase price was 42.9% below the property’s $32.4 million assessed value in January 2025, reflecting a struggling office market. The affordable housing component will serve households earning up to 60% of the area median income. For 2026, this means an annual limit of $123,300 for a four-person household and $86,310 for a single person, based on Santa Clara County income guidelines. Developers are increasingly repurposing underused office spaces into residential projects. This trend aligns with broader shifts in urban land use, driven by remote work and declining office demand. The project, located between Tasman Drive and Baypoint Parkway, aims to address San Jose’s housing shortage while adapting to changing economic conditions.
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