Sunnyvale eyes former hardware store for housing

Sunnyvale wants to replace a vacant Orchard Supply Hardware site with hundreds of new homes.

The Sunnyvale Planning Commission heard proposed plans on Jan. 27 for a 5.24-acre development at 777 Sunnyvale Saratoga Road, which would include one 7-story building with 162 apartments and close to a dozen 3-story buildings with 80 condos. The project will come back to the commission at a later date.

City planner Momo Ishijima said the developer plans to make the apartment building into 100% affordable housing and offer the condos at market rate. Those plans will need City Council approval later in the project. The city’s affordable housing guidelines mandate at least 15% of both the apartments and condos be affordable to people earning below the area median income. In Santa Clara County, that was $184,300 for a family of four in 2024.

The developer, Valley Oak Partners, will apply for special permits to demolish the existing hardware store. Developer representative Doug Rich said they’re excited about the project’s central location.

“One of the things that really excites us about the site is its proximity to amenities,” Rich said at the meeting. “There are great amenities here in terms of retail and commercial and in terms of outdoor opportunities.”

Sunnyvale has been bulking up housing near its downtown and Caltrain station over the past year. The Meridian Apartments opened last year, offering 89 affordable apartments and townhomes, and the Cityline developments have been slowly bringing hundreds more residents to the city.

Because the project meets state affordable housing requirements, it is legally allowed one concession and unlimited waivers — meaning it doesn’t have to meet all of the city’s planning requirements. Still, some commissioners balked at the developer’s request for 17 waivers, including adjustments to housing density, maximum building height, minimum commercial space and parking.

The project is zoned for 54 residences per acre, but the development wants to reduce the number to 46.2 per acre.

Commissioner Michael Serrone expressed disappointment over the number of requested waivers and the project not meeting the maximum number of homes possible.

“In order to get these waivers, the developer should show they cannot meet the density without these waivers,” Serrone said at the meeting. “Of course we want the housing, but there are many ways to do housing.”

He pointed out the developer already asked for a waiver on the city’s maximum building height for the apartment building, and suggested they consider increasing the heights of the condo buildings.
The majority of commissioners were excited by the prospect of more affordable housing. Sunnyvale resident Stephen Meier also called in to express his support and urged the developer to add pathways for cyclists and pedestrians to access retail, which will provide a safe pathway to multiple nearby grocery stores.

“We do want as many units as feasible on these sites … but we also want as many affordable units as we can get, and that is a balancing act in terms of feasibility,” Commissioner Martin Pyne said. “If we’re looking at getting the entire apartment complex being affordable units, that would be very helpful for the city, I think.”

Contact B. Sakura Cannestra at [email protected] or @SakuCannestra on X.