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The Sobrato Organization is aiming to break ground on 316 apartment units in Menlo Park sooner rather than later amid improving conditions in the Bay Area rental-housing market.
The 316 apartments in a five-story building are part of a planned redevelopment of vacant land in a fast-evolving part of the Bayfront area near Meta’s headquarters. The project by the Mountain View-based developer also features 116 for-sale townhomes in three-story buildings for a total of 432 dwellings.
On July 27, the Menlo Park Planning Commission unanimously approved revisions to the project known as 123 Independence Dr., allowing among other adjustments for Sobrato to proceed with the apartment and townhome components on potentially different phases or timelines.
“The market conditions are benefiting apartment projects to move forward right now,” Caroline Layden, senior development manager for Sobrato, told the commission during the meeting.
According to a multifamily market report by real-estate firm Marcus & Millichap, rent growth in the San Francisco metropolitan area is forecast to reach 5.2% this year to $3,270 on a monthly average. That would be the second-highest rate among major markets nationwide driven by gains of roughly 6% in San Francisco and 4% in San Mateo County.
In comparison, “the townhome market varies almost day to day, depending both on local and macroeconomic conditions,” Layden told commissioners. The revisions to the plan “just give us that extra level of flexibility and certainty for a townhome developer to come in and feel confident in the execution of the project.”
She noted that Sobrato originally intended to partner with a townhome developer for that part of the project.
“We don’t have that capability in-house really to do that,” she said of townhome construction. A townhome developer is “able to provide a much better experience in that delivery both for the community and the ultimate residents of the project.”
As also previously planned, she said, Sobrato is collaborating with the nonprofit housing organization Habitat for Humanity to build 18 affordable townhomes.
According to a staff report, 56 units on the apartment side would be affordable. The project would also include about 2,000 square feet of ground-floor commercial space and a public paseo, or pedestrian pathway.
Among the plan changes that Sobrato requested was to do the paseo in phases with some temporary elements until complete build-out over time, the report said.
“This is an important project,” Commissioner Katie Ferrick said before she and her colleagues voted for the project revisions. Ferrick said she’s pleased there are continuing efforts “to make sure that these 432 multifamily dwelling units are happening.”
Sobrato still needs other approvals to start actual construction, and if appealed, the project would go before the Menlo Park City Council.
The project has been in the planning process since 2023 and is in an area experiencing a lot of new residential and commercial activity. Nearby are the 483-unit multifamily development Lume, formerly known as Menlo Uptown, and the office-and-hotel campus Menlo Gateway, where cloud-computing company Snowflake has made its headquarters.
During public comments, Dawn Aveggio expressed neighborhood concerns about ongoing construction impacts, although she does endorse the Sobrato project.
“While I understand and support the thoughtful development, I am concerned about the requested revisions to allow infinite project phasing that could significantly extend the impacts without providing neighbor property owners with adequate provisions or certainty,” said Aveggio, who owns property close by on Jefferson Drive.
“To date, our property has already been affected by the construction-related activities,” she said. “If the city is allowing extended or infinite phasing schedule, there should also be some clear timelines, enforceable completion requirements and accountability measures to ensure that the temporary conditions do not become permanent burdens on our neighboring properties.”
Neighbors can reach out to Sobrato – including the on-site superintendent and Layden herself – regarding any issue they have, she said. They “are happy to set up a meeting and walk the site and make sure we’re addressing any concerns. We definitely want to be good neighbors.”
Sobrato knows “that there’s a fair amount of construction in addition to our project in the neighborhood,” Layden also said. “So we completely understand frustration with just general construction traffic, including roadway work.”
In addition to “affordable housing,” this development enables local citizens to become home OWNERS. Much of “the American dream” has been about buying a home and gaining equity; a savings account for the future …