Like many proposed developments throughout the Bay Area, the developers of the 401 Concar Drive project in San Mateo are the latest to ask for an application extension from the city amidst tough economic conditions, including elevated interest rates.
The necessary approvals that a city grants a development firm have a fixed shelf life, and if developers, such as Concar Drive applicant Sares Regis, are unable to secure financing within a certain time frame, they usually need to ask for an extension on their entitlements.
“The cause of the lack of start is largely due to the availability of financing,” Ken Busch, director of development at Sares Regis, said. “Interest rate costs have gone up. Insurance rates have gone up, so it’s really just the financing.”
The five-story Concar Drive development would be situated right next to the Hayward Park Caltrain station, comprising close to 200 residential units, ranging from studios to three-bedroom apartments. The project was approved by the city’s Planning Commission in 2022 but is still waiting to move ahead with construction once financing is secured. Busch said he hopes lending conditions will improve by the middle or end of the year but it’s still early to tell.
Other companies have also had to delay their developments over the past year, including the downtown Block 21 development, managed by Windy Hill Property Ventures. The firm plans to transform the currently vacant lot into a 111-residential unit building, although it went before the city’s Planning Commission in the latter half of 2023 to seek a two-year extension on account of financing hurdles.
Recommended for you
There is no vacant lot where the Concar project will be, but it does plan to replace the large parking lot currently adjacent to the Caltrain station — comprising over 200 parking spaces — and will leave about two handicapped spaces left after completion.
“Most [of the parking space] will be removed. It’s really not being used for Caltrain right now,” Busch said.
According to plan documents, the development will include 16 units for those earning less than 50% of the area median income, as well as 12 homes for those earning less than 120% of the area median income. AMI in San Mateo County as of 2023 was about $175,000 annually for a family of four.
The firm still plans to maintain the same density bonuses and entitlement conditions as the original project, Busch said.
Keep the discussion civilized. Absolutely NO
personal attacks or insults directed toward writers, nor others who
make comments. Keep it clean. Please avoid obscene, vulgar, lewd,
racist or sexually-oriented language. Don't threaten. Threats of harming another
person will not be tolerated. Be truthful. Don't knowingly lie about anyone
or anything. Be proactive. Use the 'Report' link on
each comment to let us know of abusive posts. PLEASE TURN OFF YOUR CAPS LOCK. Anyone violating these rules will be issued a
warning. After the warning, comment privileges can be
revoked.
Please purchase a Premium Subscription to continue reading.
To continue, please log in, or sign up for a new account.
We offer one free story view per month. If you register for an account, you will get two additional story views. After those three total views, we ask that you support us with a subscription.
A subscription to our digital content is so much more than just access to our valuable content. It means you’re helping to support a local community institution that has, from its very start, supported the betterment of our society. Thank you very much!
(0) comments
Welcome to the discussion.
Log In
Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.