Willow Glen Resident
News
Developer works with tenants prior to apartment conversion
By Eli Segall
Developers are sometimes seen as the "big bad wolf" who huffs and puffs, and then blows the house down--and replaces it with luxury condos.
In many respects, the condominium conversion unanimously approved by the San Jose Planning Commission on Aug. 23 appears to be just that. Located south of Willow Street at 1215 Bird Ave., the project consists of 12 vacated, two- and one-bedroom apartments, ranging in size from 650 to 800 square feet. All the units will be gutted and remodeled with new appliances before going on the market.
But the developers for this project, San Jose-based Matt Tanzi and San Diego-based Gold Coast Renovations, are no big bad wolves. They worked to ensure the previous tenants not only landed on their feet, but remained standing as well.
"We had contact with every single tenant," Tanzi said. "Each was offered cash to help with their move, some were let out of their leases early, and all were given their full security deposits back." Those who expressed interest in staying were offered a discount off the market rate.
Tanzi and Gold Coast chose to work with the tenants before waiting to hear from the city. The city requires a relocation assistance package to be offered to outgoing tenants as a condition of approval.
Rebekah Ross of the San Jose Department of Planning, Building and Code Enforcement, said for any condo conversion, developers must send a letter to existing tenants detailing their "right to receive relocation assistance." Existing tenants are guaranteed a price not to exceed market value should they decide to stay, but there is no guaranteed discount.
Although Ross typically receives phone calls and letters of complaint about condominium conversions, that was not the case with this project.
"This was something they weren't expecting, and we didn't want to hold them up from moving on with their lives," Tanzi said.
Former tenants Chad and Nancy Graves, a young couple just starting a family, wrote to Tanzi and thanked him for his "sensitivity" and "generosity" during the transition. The money offered by the developers enabled the couple to "secure new housing as smoothly as possible," they wrote.
According to papers filed with the planning commission, monthly rent for the last two years at the complex ranged between $842 and $1,100.
Once the project is completed, the developer anticipates the one-bedroom units selling for between $375,000 and $425,000 and a two-bedroom will be priced between $475,000 to $525,000, said Dave Gash of Gold Coast Renovations.
"Prices will ultimately be market-dictated," he added, "but these figures are our guestimates and hopes."
Plans include installing new kitchen cabinets, granite countertops and flooring materials. Each unit will also have a new stove, dishwasher and washer and dryer. The floor plans of each unit will remain the same.
Renovation costs will range between $1 million and $1.5 million, and Tanzi said they are aiming to have the units ready by January.
