Condo-Townhouse Hybrid Design: How Keystone Blends Density with Livability in San Jose

The demand for housing in dense urban markets has pushed developers and architects to rethink conventional building types. In San Jose, California, the Keystone project by Classic Communities demonstrates how a condo-townhouse hybrid can achieve higher density while maintaining the feel and privacy of single-family attached homes. This approach offers a compelling model for builders facing constrained infill sites. For more on how developers are tackling similar challenges, see our coverage of high-density home building strategies.

The Site and Development Context

A Narrow Urban Parcel

Classic Communities acquired the 1.4-acre site from the San Jose Redevelopment Agency and developed it through a partnership with Morley Bros. of San Jose. When Scott Ward, vice president of Classic Communities, described the project, he noted: “It was our first redevelopment project. The city wanted to see the site put to better use.” This type of infill development is becoming increasingly common as cities push for higher-density residential construction on underutilized parcels that were previously reserved for commercial or industrial uses.

John Bigot of Bassenian/Lagoni Architects recalled that city planners took a keen interest in the project from the beginning. “They wanted us to build 3-D models to demonstrate what the massing was going to look like, and the elevations and colors,” Bigot said. This early engagement with planning authorities helped streamline approvals and ensured the final design met both density goals and neighborhood compatibility standards.

Density Comparisons and Yields

Compared to its immediate neighbors, Keystone occupies a deliberate middle ground in terms of density. The project achieves 42 units at 27 dwelling units per acre (DUA), fitting neatly between an apartment building to the south at 50 DUA and a townhouse project to the north at 17 DUA. This medium-density approach proved ideal for the site’s context and market conditions, offering a density level that satisfied the city’s redevelopment goals while remaining marketable to homebuyers.

Due to the relatively small size of the parcel, Classic considered higher-density building types that would give them a better yield. According to Ward, a hybrid building type combining elements of condominiums and townhomes had been emerging over the prior three years, so the team explored those alternatives. This approach to infill development mirrors the principles discussed in our analysis of narrow-lot design strategies.

Affordable Housing Compliance

In compliance with redevelopment agency requirements, 20 percent of the Keystone units are priced below market rate. This inclusionary zoning component is typical for redevelopment projects in California and demonstrates how for-profit developers can successfully integrate affordable housing within market-rate communities when the design and density are calibrated correctly. The affordable units are distributed throughout the development rather than clustered, promoting socioeconomic integration and ensuring that all residents share the same quality of design and amenities.

Architectural Design and Building Massing

Massing Strategy and Scale

Bassenian/Lagoni Architects designed three- and four-story buildings made up of a series of sixplexes running the length of the site. The design team deliberately limited the number of four-story units to bring the building scale down and make the project feel more approachable at street level. The sixplex configuration creates natural rhythm along the facade, preventing the monolithic appearance that often plagues higher-density urban infill projects.

The massing strategy also addressed the challenge of fitting into a varied neighborhood context. By stepping down to three stories in key locations, the design respects the scale of the adjacent townhouse project to the north while still achieving the density the city required.

Spanish Colonial Aesthetic

The buildings’ exteriors feature a classic Spanish look that is distinctly uncluttered and timeless. Key architectural elements include:

• Arch-top windows that add a timeless character to the facade and reference the region’s Mission-style heritage
• Wrought-iron details for visual interest and artisan appeal at entry points and balconies
• Recessed balconies and patios embedded into stucco walls, perfect for watching street activity while offering shelter from rain and sun
• Exterior stairways inspired by Los Angeles apartment and condo buildings, adding pedestrian-scale character to interior courtyards

These exterior stairways serve a dual purpose: they add visual interest to the building elevations and make the journey to the living areas more engaging for residents. As Bigot explained, “When you have to walk up one or two flights of stairs to get to your living area and it’s all enclosed, it feels like a fire stair. With Plan Three, for example, an exterior stair takes you to a door into a stair hall, and an interior flight of stairs leads to the living area. It helps make that journey a little more interesting.”

Courtyards and Pedestrian Experience

The pedestrian courtyards between buildings function as semi-private outdoor spaces that residents can enjoy while also creating visual breaks in the building massing. This design strategy aligns with broader trends in walkable neighborhood design and new urbanism, where the quality of the pedestrian experience is central to a project’s success. The courtyards connect the exterior stairways, creating a series of contained outdoor rooms that encourage residents to interact naturally with their neighbors. Landscaping within these courtyards softens the hardscape edges and provides shade during California’s warm summer months.

Unit Plans and Buyer Segmentation

Plan One: Single-Level Living

Plan One is designed for empty nesters who prefer not to climb stairs, as well as couples with a small child. All living areas are on one level, making it the most accessible option. The plan still includes private outdoor space through the recessed balcony or patio, ensuring residents do not sacrifice indoor-outdoor connectivity.

Plan Two: Three-Story Flexibility

Plan Two is a three-story home with a strategic layout designed for maximum flexibility:

• First floor: Secondary bedrooms and baths for guests, older children, or home office use
• Second floor: Open-concept living areas, kitchen, and dining, plus additional bedrooms
• Third floor: Master suite with private bath and walk-in closet

This vertical configuration supports multiple living scenarios, including single roommates who each want their own floor, couples with older children who need separation between generations, and multigenerational households. Because there are no neighbors above or below the unit, it lives more like a standard townhome in terms of noise privacy, which Bigot identified as a key selling point for buyers accustomed to single-family living.

Plan Three: Elevator-Equipped Premium

Plan Three includes an elevator as a standard feature, making it appealing to buyers with mobility concerns or those who value added convenience. This unit type also features the signature exterior stair approach that adds character to the building facade and courtyard. The elevator positions Keystone as a forward-thinking project that anticipates the needs of an aging population while still appealing to younger buyers who appreciate the luxury touch.

Target Market Segments

The variety of plan types is designed to appeal to a broad spectrum of buyers interested in urban living:

• Empty nesters downsizing from larger single-family homes who want urban access without the maintenance burden
• Young professionals working in Silicon Valley who want walkable proximity to restaurants, transit, and entertainment
• Families with children seeking good schools and safe pedestrian access to parks and amenities
• Investors looking for below-market-rate opportunities in a rapidly appreciating regional market

Ward pointed out that one segment of the San Jose market wants a smaller condominium in a mid-rise building downtown, while another prefers a larger townhome downtown. Keystone satisfies both preferences through its hybrid design and range of plan types. For further reading on how design can attract multiple buyer segments, see our blueprint for successful mixed-income housing development.

Location, Amenities, and Market Positioning

Proximity to Urban Assets

One of Keystone’s strongest selling points is its location. The project is within walking distance of a full range of urban amenities:

• Parks and green spaces for recreation and relaxation
• A light rail line providing direct commuter access across the San Jose metro area
• Restaurants, clubs, and museums for entertainment and culture
• Shopping districts and highly rated schools
• San Jose Medical Center for healthcare access
• HP Pavilion, home of the San Jose Sharks, for sports and events

The freeway is just a few minutes away by car, making the location ideal for buyers who work in the broader Silicon Valley technology corridor while preferring an urban, walkable home base. This combination of walkable urban amenity access and regional connectivity is a powerful market advantage that few new developments in the area can match.

Standard Features and Sustainability

Classic Communities included a range of standard features that enhance both value and long-term operating efficiency:

• Double-glazed windows and patio doors for energy efficiency and exterior noise reduction in the urban environment
• Water-saving toilets and shower heads to reduce water consumption and utility costs
• 90 percent efficient natural gas water heaters for lower energy bills and reduced carbon footprint
• Smart Home pre-wiring for data, phone, and television in all units, ready for modern connected-home technology
• Elevator in Plan Three included as a standard feature, not an upgrade

These features align with California’s progressive energy and water efficiency standards while providing tangible cost savings to homeowners. The decision to include the elevator as a standard rather than optional feature in Plan Three reflects a value-engineering approach that prioritizes market differentiation over upfront cost reduction.

Market Fit and Dual Appeal

The hybrid nature of the Keystone project is its greatest market advantage. Traditional condominium buyers often cite noise from neighboring units and lack of private outdoor space as top drawbacks. Townhome buyers, meanwhile, want urban locations but find that conventional townhome densities cannot pencil out on expensive infill sites. The Keystone model splits the difference: residents get the density and location of a condo with the privacy and ground-oriented feel of a townhome.

Key Takeaways for Builders and Developers

Keystone offers several important lessons for developers working on urban infill sites:

1. Embrace hybrid building types. Combining condo and townhome elements can unlock density while preserving market appeal across multiple buyer segments.
2. Design for multiple buyer segments. A range of plan types from single-level through elevator-equipped ensures broader market coverage and faster absorption rates.
3. Work closely with city planners early. Providing 3-D massing models and engaging proactively with redevelopment agencies can accelerate approvals and align expectations.
4. Integrate affordable units thoughtfully. Inclusionary zoning requirements can be met without compromising design quality or clustering affordable units in undesirable locations.
5. Prioritize pedestrian-scale design. Exterior stairs, landscaped courtyards, and human-scaled massing improve the resident experience and create a stronger project identity.

As cities across the United States grapple with housing shortages and rising costs, projects like Keystone demonstrate that creative design solutions can deliver both density and livability on even the most constrained urban sites. For developers who can balance the competing demands of density, affordability, design quality, and market appeal, the condo-townhouse hybrid model represents a replicable approach worth serious consideration.