Reasonably priced house builder buys frat home in downtown San Jose – Marin Unbiased Journal
SAN JOSE – An affordable home developer has purchased a fraternity near the San Jose State University campus. This could help the contractor create housing for people who were previously homeless.
First Community Housing bought the downtown property where the Sigma Nu Brotherhood operated a home for the Zeta Iota Chapter, filed on November 30th.
“We looked at assistive housing locations in downtown San Jose just because that is where the homeless problem is most concentrated,” said Geoffrey Morgan, president of First Community Housing.
The three story home is located on South 11th Street between East San Fernando Street and East San Antonio Street.
The building is now empty after the university and the Sigma Nu Brotherhood suspended the Zeta Iota chapter in July.
First Community Housing is an increasingly busy developer of affordable homes in the South Bay, including several projects in San Jose.
In the most recent deal signed by First Community Housing, a subsidiary of the nonprofit paid $ 5.6 million for the fraternity house, property records show.
First Community Housing plans to develop 120 supportive housing units for the formerly homeless after the nonprofit completes the purchase of the Sigma Nu home.
The Brotherhood house could become part of a larger area on which the supporting housing estate would expand. Morgan said the nonprofit is discussing buying additional land next to the fraternity house.
“Well-managed supportive housing with good services provides the safest conditions for the homeless,” said Morgan.
New York City-based Local Initiatives Support granted a $ 5.6 million loan to finance the property purchase of Lighthouse at Grace, the subsidiary of First Community Housing. Local Initiatives Support specializes in real estate loans for affordable home builders.
First Community Housing, based in San Jose, is working on several affordable housing projects in or near downtown San Jose. These include:
– The Villages at Roosevelt, a proposed complex that would consist of 125 affordable apartments at 995 E. Santa Clara St.
– Roosevelt Park Apartments on 21 N. 21st St., consisting of 80 affordable residences.
– The McEvoy Apartments at 280 McEvoy Street would comprise 365 units and would be built not far from the footprint of the transit village proposed by Google.
Google Endeavor, a unit of the technology titan, has provided $ 29 million to finance the McEvoy Apartments.
In the last transaction, the seller was a company run by the Sigma Nu Brotherhood. The property was last bought in 1975.
Although the fraternity house is currently empty, First Community Housing is determined to use at least part of it to demonstrate that the site has not been abandoned.
“We’re going to be doing a little bit of retrofitting so we can have a leasing office for some of our projects,” said Morgan. “Right now it’s just free and we want to use it pretty quickly. We want to actively manage it. “
Morgan said he volunteered to help the homeless in downtown San Jose.
“The purchase of the Sigma Nu home is really advancing the cause of solving one of San Jose’s worst problems,” said Morgan.