SAN LORENZO, Calif. — Plans to turn a vacant Mervyn’s department store in San Lorenzo into a mixed-use apartment complex have been postponed because of “rising interest rates and escalating construction costs,” according to a Tuesday press release.
On Tuesday, Nov. 28, 3rd District Alameda County Supervisor Lena Tam and Sacramento-based developer Demmon Partners announced that the construction of the Village Green Apartments on Hesperian Boulevard is being indefinitely postponed because of “adverse economic conditions.” The development, which would have featured 138 market-rate apartments and 11,050 square feet of retail space on the ground floor, is crucial for revitalizing the area, Tam said.
“The Village Green Apartments project is critical to the revitalization of San Lorenzo by introducing urgently needed residential and economic opportunities into the area,” Tam said in a statement. “My office will continue to work with the Bohannon Organization, Demmon Partners and the San Lorenzo community to support this project.”
The Mervyn’s building has been vacant since 1995 and will remain vacant until a final decision has been made about the Village Green Apartments project, Scott Bohannon, senior vice president of site owners Bohannon Development Company, said in the release. The site will be used for seasonal or temporary uses in the meantime.
“Currently, the Village Green Apartments development is not economically viable and will not be feasible until conditions recover,” Bohannon said. “At this time, it is impossible to determine when that will happen, but we remain hopeful for the project’s eventual completion.”
The Village Green Apartments project has been in the works since 2017, when it was first proposed by Demmon Partners. It was expected to be part of a larger downtown revitalization effort, including the renovation and restoration of the Lorenzo Theater and expansion of the San Lorenzo Library. The release states the project may still move forward if economic conditions improve in the future.
“Throughout this process, Demmon Partners has been committed to bringing Village Green Apartments to San Lorenzo and continue to believe this community is an ideal spot for this new project,” Terry Demmon, of Demmon Partners, said in a statement. “We look forward to once again pursuing this critical development when circumstances prove more favorable.”
Photo caption: Rendering of the proposed Village Green Apartments project in San Lorenzo. (Courtesy of Lena Tam)
