Waterford JV Starts Affordable Silicon Valley Project
Completion is slated for 2028.
Waterford Property Co., Pacific Housing and C&C Development have broken ground on a 75-unit affordable housing project in Milpitas, Calif. Completion of the KTGY Architecture-designed project is expected in 2028.
Development costs total $47.6 million, according to a staff report by the California Tax Credit Allocation Committee. CTCAC recommended $1.8 million in annual 4 percent LIHTC and $12.5 million in tax-exempt bonds to be issued by the California Municipal Finance Authority with KeyBank placement.
National Equity Fund is the tax credit equity investor, while California Bank & Trust provided construction financing and Citibank issued permanent mortgage.
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Waterford and Pacific Housing’s project represents the income-restricted rental portion of a larger condominium property by PulteGroup, an entity that also contributed $6.4 million toward the affordable community.
Apartments will have one- to three-bedroom layouts and cater to residents earning up to 30, 60 and 70 percent of the area median income. Social services such as youth tutoring, teen programming, financial literacy and wellness classes will be available upon the five-story project’s completion.
The community will rise at 1397 California Circle, on a former industrial campus near Interstate 880 and a rail corridor. Downtown San Jose, Calif., is roughly 9 miles south.
Waterford has developed and acquired more than $3 billion in projects across California and Texas. The firm’s pipeline comprises more than 6,151 affordable housing units across 32 communities.
Affordable projects dominate a thinning pipeline
Silicon Valley’s multifamily pipeline began to thin out as construction started on just 1,303 units during the first five months of 2026, marking a 7.5 percent annual decline, according to a Yardi Matrix report. Fewer housing completions are also expected, as the data provider forecasts 1,800 total apartment deliveries this year, substantially below the 3,726-unit annual average logged since 2018.
However, San Jose’s pipeline of income-restricted units was solid, with 56 percent of all under-construction apartments pertaining to fully affordable projects in May, the same source shows. Among them is the 300-unit development at 950 W. Julian St., spearheaded by Pacific Housing, R4 Capital and JEMCOR Development Partners. Completion is expected by the end of the year.
