SOQUEL >> A housing developer has officially purchased a plot of land in Soquel that will be used to create hundreds of affordable housing units.

Cushman and Wakefield, a commercial real estate service firm, shared in a news release that it has brokered the sale of a 2.5-acre undeveloped parcel at the corner of 41st Avenue and Soquel Drive. The property owner, Reno-based Pacific West Communities, acquired the land for $10.35 million and, in partnership with Linc Housing, plans to construct 289 residential units of 100% affordable housing. By the state’s definition of “affordable,” rent cannot be more than 30% of gross earnings for median income households and below.

According to the early October release from Cushman and Wakefield, plans for the $200 million housing project include two five-story multifamily buildings over an at-grade podium garage with about 240 parking stalls and elevator access to all levels.

“This new exciting, high quality residential development will bring much needed affordable housing to the residents of Soquel and the broader Santa Cruz County/Central Coast market, and aligns favorably with the desires of many in the community,” Reuben Helick, managing director at Cushman and Wakefield, said in the release. “The location is situated at a prime intersection that is also convenient to Highway 1, making it highly accessible for commuters as well as walkable to an abundance of retail, shopping, restaurant, and recreational activities surrounding the project. The property is also proximate to the Central Coast’s renowned beach locales, including Capitola and Santa Cruz Beach Boardwalk.”

According to the real estate service firm, the property seller was Blam Jade LP, owned by Don Groppetti of the Groppetti Automotive Family. Groppetti had previously received a green light to build a Nissan auto dealership and services facility on the Mid County parcel, but ultimately decided not to pursue the effort.

The proposed project is one of several in development along the bustling Soquel Drive corridor including another 183-unit affordable housing project at Soquel Drive and Thurber Lane. The owners of the parcel on the corner of Soquel Drive and Mattison Lane, that is home to the Silver Spur cafe, recently announced intentions to build a 90-unit senior-assisted living and memory care housing facility, though no plans had been submitted to the county as of mid-October.

According to an October newsletter from Supervisor Manu Koenig, who represents much of the Soquel Drive corridor on the Board of Supervisors, the Pacific West Communities project will not require a public hearing or be subject to approval by the county Planning Commission or board because it capitalizes on recent state legislation that expedites these projects. State Assembly Bill 2011, signed by Gov. Gavin Newsom in 2022, allows for ministerial, by-right approval for affordable housing on commercially zoned land and mixed-income housing along commercial corridors, according to pro-housing advocacy group California Yes In My Back Yard.

Still, Koenig wrote in his newsletter message that the developer is in the process of applying for building permits and that he’s working to host a public meeting in the near future to gather some community input and preferences for the project.

According to the Cushman and Wakefield release, project amenities are likely to include laundry facilities, on-site management and services, a large community room, fitness center and playground.

The various Soquel Drive projects arrive as the county — and all local jurisdictions — are faced with ambitious state-mandated housing goals as part of the newly-passed Housing Element. The eight-year planning document requires the county to plan for construction of at least 4,634 new units in unincorporated territory by 2031.

At a community meeting Koenig attended recently for the project at the Silver Spur, some local residents voiced concerns that there was no master housing plan for the Soquel Drive corridor and wondered why so much housing was manifesting there specifically. Koenig explained in his newsletter message that, given the state’s massive housing goals and the legislation that incentivizes development, areas in Soquel, Live Oak and Aptos are some of the few regions in unincorporated territory that are within the Urban Services Lines, where basic utilities are available. That, plus the fact that these projects are so close to major transit corridors along Soquel Drive and Highway 1, makes the available parcels ripe for major housing projects.

“In short,” Koenig wrote in his newsletter, “it is unlikely that a resource or impact finding will stop these projects. There are few other places in the unincorporated County that are better resourced than these sites.”

The property buyer also separately acquired an additional 5,000 square feet of land abutting the 2.5 acre site, giving it a total of 2.7 acres to develop the housing project.