SAN JOSE — Two veteran home builders will develop new residences on different sections of the current site of a huge San Jose mobile home park.
Texas-based developer Hanover Co. will build hundreds of apartments and Georgia-based Pulte Homes will build hundreds of for-sale houses on the site of Winchester Ranch Mobile Home Park in San Jose, which is located next to the world-famous Winchester Mystery House.
All told, about 700 residential units are slated to sprout on the 15.7-acre site, which is located at 500 Charles Cali Drive near the corner of South Winchester Boulevard and Tisch Way.
On May 28, Atlanta-based Pulte Homes paid $50 million in cash for the entire site, according to documents filed with the Santa Clara County Recorder’s Office.
On July 7, Hanover bought 3.45 acres of the site from Pulte, paying $28.4 million for a section of the property that’s along South Winchester Boulevard where the apartments will be built.
Houston-based Hanover intends to build an apartment complex totaling 366 rental units on its share of the property.
“The Winchester project represents a great opportunity to add needed housing just a short walk to the restaurants and retail amenities at Santana Row, as well as the existing and future employers centered here,” said Scott Youdall, development partner at Hanover Co.
The demand for housing in the vicinity could intensify in short order.
Two high-profile tech companies have struck deals to establish major operations at nearby Santana Row, an iconic mixed-use destination center of restaurants, shops, offices, hotel facilities, and homes in San Jose.
NetApp leased 301,000 square feet at 700 Santana Row in April and this year is expected to shift its headquarters and other local operations to the complex.
Splunk, another tech company, is leasing 235,000 square feet at 500 Santana Row.
Plus, a short distance away, Federal Realty, the owner of Santana Row, is actively marketing a brand-new office building called One Santana West.
Nearby, tech titan Apple has established outposts in San Jose and Santa Clara and also maintains its landmark doughnut-shaped headquarters in the Apple Park complex in Cupertino.
“We’re excited to be breaking ground on another development in San Jose,” Hanover executive Youdall said.
Pulte intends to build about 320 single-family homes on its share of the site. Four-story townhomes and condominiums will be among the single-family homes.
The Hanover-built apartment complex is expected to be seven stories high.
Winchester Ranch Mobile Home Park is reserved for residents who are 55 years of age or older. The park contains about 110 mobile homes.
Residents were worried for years that they would be forced out of their homes altogether when the existing structures were bulldozed for the new project.
In 2019, an agreement allowed the residents to continue to live in the park, and to live in new homes that are being developed. Mobile home park residents who decide to stay on the mobile home property will be allowed to live in temporary housing either on-site or off-site while construction is underway.
People who choose to move away from the property will be provided with a relocation package that features a one-year subsidy to bridge the difference between what they pay now in rent and what they wind up paying in rent at their new home.
The new residences could greatly bolster the nearby shops, restaurants, and movie theater at Santana Row, in the view of Erik Schoennauer, a San Jose-based land-use and property consultant who is advising Hanover.
“Putting new customers in close proximity to restaurants and retail will drive sales tax generation and benefit the city of San Jose’s budget,” Schoennauer said.