S
an Jose is set to break ground on a 15‑story, 220‑unit affordable housing development at 470 South Market Street in downtown’s SoFA district. The Core Cos., the project’s lead developer, announced that all financing has been secured and construction will begin in the first quarter of 2026, with completion slated for the first quarter of 2028. A joint venture between Build Group and Core Builders will serve as the general contractor.

    The entire building will be reserved for households earning 30% to 70% of the area median income. Using the 2025 AMI of $195,200 for a family of four, the income cap ranges from $58,560 to $136,640. The developer hopes to attract teachers, health‑care workers, and service‑industry employees, and will offer a tenant‑preference program that gives priority to local SoFA artists.

    “Gateway Tower will not only address the urgent need for affordable housing, but it will also help revitalize downtown San Jose,” said Chris Neale, president of The Core Cos. Mayor Matt Mahan echoed the sentiment, noting that an arts district thrives when artists have a place to live. Mark Ritchie, president of Ritchie Commercial, added that increased downtown residency will boost foot traffic and local commerce.

    Funding comes from multiple public sources: $64 million from Santa Clara County, $38 million from the City of San Jose, and $4 million from the California Housing Finance Authority. The project’s location in the vibrant SoFA district—home to restaurants, nightclubs, cocktail lounges, and live‑performance venues—positions it as a catalyst for further neighborhood growth.