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major milestone has been reached in the development of a sprawling apartment complex in east San Jose, with Hanover Co. securing a construction loan to bring the project to life. The 345-unit residential community will rise from a site at 905 and 907 North Capitol Ave., situated near the Interstate 680 and Berryessa Avenue interchange.

    The $87.4 million loan from Citizens Bank has cleared the way for construction to begin, with Scott Youdall, regional development partner for Hanover's West Coast operations, crediting San Jose officials' decision to reduce development fees as a key factor in securing financing. "With the city council's fee reduction, we're now poised to break ground," Youdall said.

    The project, which will feature 328 market-rate units and 17 affordable housing units, is expected to be a seven-story complex with an underground parking area. The ground floor will include approximately 2,900 square feet of commercial and office space, as well as a leasing office. Residents will enjoy amenities such as a clubroom, courtyards, pool deck, and fitness center.

    The site, which currently houses a single-family home, barn, and greenhouse, is located near the Penitencia Creek light rail stop on North Capitol Avenue and is just a 2-mile drive from the Berryessa BART station. The project's completion timeline has not been finalized, but construction is expected to begin this week.