A significant housing development is planned for San Mateo, California. Align Real Estate, a San Francisco-based developer, has filed an application to construct 396 new homes at the site of an existing Safeway store at 1655 S. El Camino Real. The project includes replacing the current grocery store with a new, larger Safeway, topped by a seven-story residential complex.
Key Takeaways
- Align Real Estate proposes 396 new homes at 1655 S. El Camino Real in San Mateo.
- The project will replace the existing Safeway with a new, larger store and seven stories of housing above.
- Approximately 55 units will be designated as income-restricted affordable housing.
- The development is near the Hayward Park Caltrain Station, promoting transit-oriented living.
- Align Real Estate is using state housing streamlining laws to advance the project.
New Housing and Modern Grocery Store for San Mateo
The proposed development aims to address the region's housing shortage while providing a modern retail experience for local residents. The site, spanning nearly 3 acres, is strategically located close to the Hayward Park Caltrain Station, making it an ideal spot for transit-oriented development.
Align Real Estate's plan involves demolishing the current low-rise Safeway building. In its place, a new structure will rise, featuring a larger, updated Safeway store at ground level. Above the grocery store, seven stories of residential units will house the 396 new homes.
Project at a Glance
- Location: 1655 S. El Camino Real, San Mateo
- Units: 396 new homes
- Affordable Units: Approximately 55 (income-restricted)
- Height: Seven stories (above a new Safeway store)
- Site Size: Nearly 3 acres
Affordable Housing and Community Benefits
A notable aspect of this project is the inclusion of affordable housing. Roughly 55 of the proposed units will be income-restricted, offering much-needed options for residents across different income levels. This commitment aligns with broader efforts to make housing more accessible in the expensive Bay Area.
The development also plans to include secured parking for both future residents and Safeway shoppers. This addresses a common concern in dense urban developments, ensuring convenience for both new inhabitants and the wider community using the grocery store.
"We're excited to bring this project to the San Mateo community, adding much needed housing and a bigger and more modern grocery store to the neighborhood," stated David Balducci of Align Real Estate. "By transforming an underutilized site, this proposal will create nearly 400 new homes, including affordable units, while strengthening and expanding convenient access to fresh, nutritious food and everyday essential services for residents."
Leveraging State Housing Laws
Align Real Estate is utilizing California's housing streamlining laws, such as SB 330, to facilitate the project's progression. These laws are designed to accelerate housing development by limiting local governments' ability to block or significantly alter projects that meet certain criteria, especially those including affordable housing.
This approach has been central to Align's strategy in other Bay Area projects. The developer has a history of partnering with Safeway to redevelop underutilized grocery store sites into mixed-use residential complexes. This model helps to increase housing density in established urban areas.
A Trend of Redevelopment
Align Real Estate has been active in redeveloping Safeway sites across the Bay Area. In San Francisco, the company has proposed major residential projects at four other Safeway locations, aiming to deliver over 3,500 new homes in that city alone. These projects often involve replacing existing stores with new, larger ones, topped by significant housing components.
Safeway's Long-Term Commitment to San Mateo
The grocery chain Safeway views this redevelopment as a reflection of its continued investment in the San Mateo community. Kelly Mullin, Safeway Division President, emphasized the company's commitment to modernizing its facilities and serving local needs.
Current employees of the existing Safeway store will retain their jobs. They will be reassigned to nearby stores during the construction phase, ensuring continuity of employment. This is a crucial detail for local workers and their families.
Kelly Mullin noted, "By investing in creating a modern, expanded store, we're making it easier for residents to access fresh, nutritious food and convenient grocery services while ensuring we meet the community's needs well into the future."
San Mateo's Development Landscape
Unlike some neighborhoods in San Francisco that have historically resisted new development, San Mateo has seen considerable housing growth in recent years. This growth is largely driven by a focus on transit-oriented infill projects and a regional push to alleviate the housing crisis.
A prime example of this trend is the Bay Meadows master plan, which transformed a former racetrack into a vibrant mixed-use neighborhood. This project delivered approximately 1,100 new homes, alongside offices, retail spaces, and parks, all centered around access to Caltrain.
Zach Dahl, Community Development Director for San Mateo, confirmed that city staff has begun reviewing Align's application. He acknowledged the community's interest in the project and stated that more information would become available once the review process is complete.
The proposed development at 1655 S. El Camino Real represents a significant step in San Mateo's ongoing efforts to expand its housing supply and modernize its urban infrastructure. It combines essential retail services with much-needed residential units, aiming to create a more vibrant and livable community.





