UPDATE: In a significant move for housing development, Summerhill Homes has officially purchased the Los Gatos Lodge for $78.4 million. This acquisition, confirmed through documents filed on October 15 with the Santa Clara County Recorder’s Office, signals a major step forward in the planned residential project at the site.
The Los Gatos Town Council unanimously approved Summerhill’s proposal in March 2023 for a 155-unit housing development at 50 Los Gatos-Saratoga Rd. The ambitious project will feature three-story townhomes distributed across 28 buildings, with a mix of housing options designed to cater to various income levels. Of the total units, there will be 26 below-market-rate residences, 16 aimed at low-income families, and 10 designated for moderate-income households.
This development is critical as Los Gatos faces increasing housing demands. “We believe that the project will be a valuable asset to the community, helping the town provide housing so that it will continue to sustain a thriving, multigenerational community,” stated John Hickey, vice president of development for Summerhill Homes, during the March council meeting.
The Los Gatos Lodge, which has been a fixture in the area since it was built in 1936, has seen little remodeling since the 1970s. Previous attempts to sell the property, including an effort by current owner Keet Nerhan in 2019, fell through, making this sale particularly notable.
While the precise timeline for the development remains unclear, the acquisition marks a pivotal moment for both Summerhill and the community. The project aims to address the pressing need for diverse housing options in Los Gatos, which has been grappling with rising housing costs and limited availability.
As this story develops, residents and stakeholders will be watching closely to see how this purchase will transform the landscape of Los Gatos. With the demand for affordable housing on the rise, the success of this initiative could set a precedent for future developments in the region.
