Development is taking place in two phases, which are expected to deliver approximately 1,100 units.
Hanover Co. has started work on Coyote Creek Village, a 22-acre, mixed-use community located in San Jose, Calif. When complete, the property will offer 1,140 market-rate units on about 9.3 acres.
The development will include studio apartments, as well as one-, two- and three-bedroom units over three buildings. The master plan also calls for 154 for-sale townhomes by SummerHill Homes and the construction 136 affordable rental units by The Pacific Cos.
The first of the Coyote Creek Village buildings will be Hanover Parkside. also called Building A, which is now under way, with completion slated for late 2027. Hanover Coyote Creek Building B, will break ground in the second quarter of next year. The schedule for the third building hasn’t been released.
The residential buildings will be integrated with above‑grade parking, as well as 5,000 to 10,000 square feet of ground‑floor retail, restaurant, and amenity space. The site includes a two‑acre central public park, as well as interior courtyards, lounges, and other gathering spaces. KTGY is the project’s architect.
The property’s pathways and passages will focus on connectivity, linking building amenities to the adjacent Coyote Creek Trail system, according to Jose Manuel Castillo Zeng, a project manager at KTGY. The design blurs the lines between public and private spaces, and encourages residents to use the existing and future open space amenities, he said. Bike‑ and pedestrian‑friendly pathways connect to the Coyote Creek Trail system.
Hanover Co. is a national multifamily and industrial developer, with 130 completed projects and 38 now leasing, as well as 14 under construction. Much of its development has been in California, but the company also has multifamily projects in Arizona, Colorado, Florida and Washington, D.C.
San Jose market sees growth
The San Jose multifamily market has slowed down in terms of development, but projects are still under way or planned at a reasonably strong pace. Completions totaled 1,597 units year-to-date through May, Yardi Matrix reports, which was 1.1 percent of existing stock.
Development activity may be down, moving closer to historical averages. Even so, builders still had more than 5,200 units under construction as of May, along with 56,000 units in the planning and permitting stages.
Overall occupancy in stabilized San Jose properties eked out a 10 basis-point gain over 12 months, to 96.3 percent as of April. Considering that there was a new supply bulge last year, that indicates a need for more housing across the metro, Yardi Matrix posits.
Average advertised asking rents were up 0.6 percent on a trailing three-month basis through May, to $3,259, according to Yardi Matrix data. That rate of increase was 30 basis points higher than the national average.
