Los Gatos North 40 site changes hands, project moves foward
SummerHill homes paid $66.1M for the first phase location
LOS GATOS >> SummerHill Homes has bought a Los Gatos site that’s been engulfed in controversy, clearing a final path to development of homes, retail and a market on the location, which is perched at a busy freeway interchange.
Dubbed the North 40 site, and the location of the last walnut orchard in Los Gatos, the development has been mired in years-long fierce political and legal debates.
Ultimately, a lawsuit ended in a judge’s ruling that the Town of Los Gatos erred in 2016 when it decided the project couldn’t go forward. Then in August, the town council narrowly approved the first phase of the project.
“There are a total of 320 residential units and approximately 57,500 square feet of retail that were approved for the first phase of the North 40 development,” said Katia Kamangar, an executive vice president and managing director with Palo Altobased SummerHill. The site is at the interchange of State Route 17 and Lark Avenue.
The most recent milestone was reached May 25, when affiliates of SummerHill homes paid $66.1
million for the first phase location through two realty transactions, according to Santa Clara County property records.
Yuki Farms was paid $57.3 million and Grosvenor Americas received $8.8 million through the separate acquisitions, county documents show.
The development site is deemed to be crucial to Los Gatos, according to a statement in project documents posted on the town’s website.
“The North 40 reflects the special nature of our hometown,” the Town said in the statement. “It celebrates our history, agricultural heritage, hillside views and small town character. The North 40 is seamlessly woven into the fabric of our community, complementing other Los Gatos residential and business neighborhoods.”
One of the unique elements of the project is a Market Hall that will offer quality artisan products and produce, according to Kamangar.
“The heart of the project comes alive with a specialty market and neighborhood retail where neighbors, friends and families can gather and celebrate the Los Gatos quality of life,” the
planning documents stated.
SummerHill now is attempting to obtain specific building permits for the property.
“We hope to be out on site this summer for tree removal, followed by demolition and grading later this year,” Kamangar said. “There are many details to work out on a project of this scale.”
SummerHill estimated that construction of the residences could begin in the spring of 2019 and sales of homes would start in late
2019.
Even more development could occur in the North 40 site, because even after SummerHill launches construction, undeveloped parcels that are part of this property could attract more interest from other builders. No proposals have emerged for the other parcels that aren’t part of Phase 1, though.
With the first phase, however, Los Gatos hopes to address a tiny slice of the dire housing woes in Silicon Valley, both for milennials and senior citizens.
“Our plan features a mix of housing opportunites tailored to meet the Town’s unmet needs for places for young professionals and seniors to live,” the SummerHill planning documents stated. “The residences are tied together with an open space plan that embraces the site’s agricultural history through functioning community gardens and orchard treatments.”