I
n a major milestone for the ambitious project, a sprawling housing development in north San Jose is poised to take shape after a flurry of property purchases. The Hanover Co., a Texas-based real estate firm, has acquired 22.2 acres at 2620 Seely Ave. through three separate transactions totaling $78.6 million, according to county records.

    The land will be divided among several developers, with SummerHill Homes set to build for-sale townhomes on approximately seven acres. U.S. Bank National Association provided construction financing of $61.2 million to facilitate the project's launch this month. Demolition and grading are the first steps in the development process.

    When complete, the project will yield around 1,472 homes, featuring a mix of market-rate apartments, affordable units, townhomes, neighborhood retail, and a new city park. The development will be situated near the intersection of Montague Expressway and Seely Avenue.

    Key components of the project include:

    * 154 townhomes by SummerHill Homes

    * 178 affordable units developed by The Pacific Cos.

    * 1,140 apartments developed by Hanover, including 57 inclusionary affordable units

    * 19,000 square feet of neighborhood retail

    * A 2.5-acre city park

    The Sakauye Family and Karolewski Family sold the land, which will preserve the historic Sakauye Farm site at 2620 Seely Ave. The family's farmhouse will be relocated to History Park in San Jose.

    "This project represents a significant investment in San Jose's future," said Erik Schoennauer, principal executive with Schoennauer Co., the land-use consultant for the development. "The fact that we've secured funding and closed on this deal is a testament to the city's appeal to investors."