STORY HIGHLIGHTS
- Danco Group acquired a site for $10.5 million.
- Plans include 128 affordable housing units on the property.
- Construction is set to begin in 2026, lasting two years.
An Arcata construction company has acquired the site of a proposed residential development for $10.5 million with plans to build affordable housing on the property.
Danco Group, which builds rental properties for low-income residents, bought the property from Capitol Equity, according to records filed with the Santa Clara County Clerk Recorder’s Office Nov. 12.
A permit to build 128 affordable housing units on the 1.5-acre site is under review, according to the city permit records. Currently, the property houses a 5,627-square-foot single family home. The development permit shows plans to demolish the home and replace it with a five-story apartment complex.
The property, at 1207 North Capitol Ave., sits on the edge of a residential neighborhood and near a light rail station.
Though the timeline is subject to change, a representative from Danco Group said the company plans to begin its construction phase in 2026, which will last about two years. The lease-up phase, set to begin as construction nears completion, is anticipated to begin summer of 2028, according to Danco Group.
San Jose must add more than 62,000 residential units between 2023 to 2031 to meet its state housing goals. Of that total, roughly 23,800 must be designated as low or very low-income housing. San Jose last year completed a mere 1,441 units of new housing, less than a quarter of them affordable, according to the California Department of Housing and Community Development.
Danco’s plans for the apartment complex includes, lounges, community rooms, fitness facilities and open spaces in the “c-shaped” building, the company posted online.
The last time 1207 North Capitol Ave. exchanged hands was 2020, according to real estate database PropertyShark. Capitol equity bought the property for roughly $2.4 million
