Palo Alto approves 368-apartment complex on El Camino Real

One of Palo Alto’s largest and most ambitious housing projects, a 368-apartment complex proposed for the former site of The Fish Market on El Camino Real, has received the green light from the city, clearing the way for construction to begin.

The proposal from Acclaim Companies for 3150 El Camino Real exemplifies more than any other the City Council’s new vision for housing, which calls for going big on El Camino Real in south Palo Alto. Planning Director Jonathan Lait sent a letter to the developer on July 11, notifying Acclaim of the tentative approval, which will take effect barring a last-minute appeal.

The project also reflects the city evolving response to developments that rely on “builder’s remedy,” a provision of state code that allows builders to exceed zoning regulations in jurisdictions without approved housing plans. Acclaim’s project is one of 10 “builder’s remedy” applications that Palo Alto had received before the state Department of Housing and Community Development certified the city’s Housing Element in August 2024.

While the council has been mostly critical of builder’s remedy projects, members were more receptive to this one. Rather than fighting it, the council changed the zoning code on El Camino Real to create a new “housing focus zone” with development standards that roughly match the ones that Acclaim had proposed. In May, the council further revised the housing zone, expanding its applicability to site both north and south of Page Mill Road.

During the May 28 meeting, Mark Johnson, CEO of Acclaim, credited the city’s recent zoning changes with making the project possible and said his company hopes to start construction before the end of this year. He called the project’s inclusion of 74 below-market-rate units “one of the largest BMR contributions in Palo Alto’s history.”

“The updates under consideration strike an important balance, offering developers the clarity and flexibility required to build feasible projects while remaining consistent with the city’s high design and planning standards,” Johnson said.

The proposed seven-story building, which aligns with the recently revised zoning code, would be 79 feet tall and will feature a two-story underground parking garage with 455 parking stalls. It would include 74 below-market-rate units for households making between 50% and 80% of area median income. The new apartment building also include a roof deck and a lounge, according to the project plans.

Project plans show that the new building would have 12 studio apartments, 231 one-bedroom apartments, 97 two-bedroom apartments and 28 three-bedroom apartments.

Located just north of Hansen Way, the development will take over a site that formerly housed The Fish Market and McDonald’s. Acclaim consolidated five parcels on the 3100 block of El Camino to enable the project.

The project is advancing through the city’s recently streamlined process for housing projects, which only requires a study session from an Architectural Review Board before a development is approved by planning staff. If someone appeals the approval within 10 days, the project could be referred to the City Council for a final review.

The city had not received any appeal as of July 16.

In approving Acclaim’s project, Lait concluded that the development meets the city’s objective standards for housing complexes and that it will “not result in a specific, adverse, impact upon the public health or safety, which cannot feasibly be mitigated or avoided in a satisfactory manner.”

The approval letter includes a list of conditions pertaining to construction impacts. These include conditions to ensure tree protection, noise mitigation and proper placement of utilities equipment.

This story originally appeared in Palo Alto Weekly. Gennady Sheyner is the editor of Palo Alto Weekly and Palo Alto Online. As a former staff writer, he has won awards for his coverage of elections, land use, business, technology and breaking news.