S
an Mateo’s tech boom has left the city with a surplus of market‑rate homes while it still falls short on affordable options. A 12‑story office tower on South El Camino Real, once a sought‑after lease location in 2007, now sits 80 % vacant as the office market cools.
Tourbineau Real Estate Partners, led by Ben Wong, bought the building for $22 million last summer—a reflection of the steep drop in Bay Area commercial values. Wong sees the property as a “diamond in the rough,” noting that $15–$16 million has already been invested in recent upgrades. The plan is to transform the space into 156 apartments, mostly studios and one‑bedrooms, with a handful of affordable units. Construction will start at the end of 2026 and finish in 2027.
San Francisco’s precedent for such conversions is clear: in 2016, 100 Van Ness was named the nation’s best residential project after turning a 29‑story office tower into 418 units. Developer Marc Babsin praised San Mateo’s building for its full‑sided windows, a feature rare in downtown cores. He cautions that construction costs have risen roughly 70 % over the past decade, posing a challenge to the project’s economics.
Zillow’s 2025 data shows San Mateo rents averaging 75 % above the national mean, with one‑ and two‑bedroom units up 16 % this year. Wong argues that the high income and rent levels justify the investment. City officials welcome the conversion, noting that San Mateo still needs to secure 7,015 units in its pipeline by 2031. Mayor Adam Loraine said reducing office space in favor of residential units creates a better balance and opens the door for future projects.
In June 2024, the Housing Action Coalition sued the city for insufficient housing, with attorney Tom Mayhew criticizing the city’s proposed sites as unrealistic. Five months later, voters approved Measure T, allowing greater height and density near transit hubs and downtown. Since then, the city has received 15 development applications totaling about 6,000 potential units—roughly 85 % of the required pipeline. These policy shifts have made San Mateo the most active city in the county for new development.
