Homebuilder Acquires Los Gatos Lodge for $78.4 Million

BREAKING NEWS: In a significant move for local housing, Summerhill Homes has officially purchased the Los Gatos Lodge for $78.4 million. The acquisition, confirmed through documents filed on October 15 with the Santa Clara County Recorder’s Office, positions Summerhill to advance its ambitious housing development plan at the site.

The 128-room hotel located at 50 Los Gatos-Saratoga Rd will be transformed into a 155-unit housing development, following the unanimous approval from the Los Gatos Town Council in March 2023. This project will feature three-story townhomes spread across 28 buildings, including a mix of below-market-rate units aimed at providing affordable housing options for the community. Specifically, the plan includes 26 below-market-rate units, 16 low-income units, and 10 moderate-income units.

“This 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 council meeting in March.

The timeline for the development’s rollout remains unclear, but the urgency for new housing in the area is palpable. As housing shortages continue to strain local residents, this development could play a crucial role in alleviating some of the pressure.

Previously, the Los Gatos Lodge was owned by Keet Nerhan, who purchased the hotel in 1996 from Alleghany Properties. Nerhan had attempted to sell the property in 2019, but that deal fell through within months, according to county records. The lodge, originally built in 1936, has not seen significant renovations since the 1970s, highlighting the need for redevelopment.

As Summerhill Homes moves forward with its plans, the community is watching closely. The potential transformation of the Los Gatos Lodge into much-needed housing could not only reshape the area but also provide critical support to families struggling to find affordable living options.

Stay tuned for updates as this story develops. The community’s future rests on the successful execution of this pivotal housing project.