How the redevelopment of 1655 El Camino Real signals a denser, transit-oriented future for the Peninsula.
For decades, the Safeway at 1655 South El Camino Real has been a staple of the San Mateo suburban landscape, a sprawling single-story grocery store surrounded by a sea of asphalt. But as the Peninsula grapples with an unprecedented housing shortage and state-mandated growth targets, the era of the low-density "supermarket-plus-parking-lot" is coming to an end. Align Real Estate has proposed a massive transformation for the nearly three-acre site, replacing the aging store with a modern, seven-story mixed-use complex that integrates 396 residential units directly above a significantly expanded grocery store (San Mateo Daily Journal) [3].
This project isn’t just about adding floor area; it is a fundamental rethinking of how urban land serves the community. By utilizing the "grocery-over-housing" model, San Mateo is attempting to solve two problems at once: meeting its rigorous housing requirements without sacrificing the essential retail services that residents depend on. As the project moves through the preliminary phases, it serves as a litmus test for how San Mateo, and the broader Bay Area, will manage the tension between suburban nostalgia and the urgent need for high-density, transit-oriented development.
In this post, you will learn:
- The technical specifications and architectural vision for the 1655 El Camino Real redevelopment.
- How the project fits into San Mateo’s mandate to build 7,015 new housing units by 2031.
- The logistical and community challenges of the "grocery-over-housing" model in high-traffic corridors.
The Shift Toward Vertical Integration on the Peninsula
The proposal for the Safeway site is a direct response to a changing California. For years, the Peninsula was defined by horizontal growth, where commercial corridors like El Camino Real were separated from residential neighborhoods by miles of strip malls and surface parking. Today, that model is no longer sustainable. With the Hayward Park Caltrain Station just a few blocks away, the 1655 El Camino Real site is a textbook candidate for Transit-Oriented Development (TOD) (SF YIMBY) [2].
Align Real Estate’s vision involves the complete demolition of the existing 41,740-square-foot Safeway (The Daily Journal) [3]. In its place, the firm plans a modern, 60,600-square-foot grocery store, an nearly 50% increase in retail space, that will serve as the "podium" for six floors of residential living. This strategy ensures that the neighborhood doesn't lose a vital food source while simultaneously contributing to the city’s housing stock. It is a bold move that mirrors similar developments in San Francisco and San Jose, where urban grocery stores like Whole Foods and Trader Joe’s have successfully anchored large apartment complexes.
Architectural Vision: Density Without the "Bunker" Feel
One of the primary critiques of high-density housing is that it can feel monolithic or disconnected from the street. The design by Seven-story mixed-use building aims to mitigate this through a split-block layout (SF YIMBY) [2]. Instead of one massive slab, the residential portion consists of two distinct housing blocks separated by a central courtyard. These blocks are connected by aerial walkways, which not only serve a functional purpose but also add architectural visual interest.
The exterior palette is designed to break up the massing further, featuring green siding, large floor-to-ceiling windows, and inset balconies (SF YIMBY) [2]. These balconies provide residents with private outdoor space, a luxury often sacrificed in dense urban projects, while the central courtyard offers a shared communal area. By placing the grocery store on the ground floor with high ceilings and transparent glass facades, the building maintains an active "street life," encouraging pedestrian interaction rather than presenting a blank wall to the sidewalk.
Meeting the Mandate: San Mateo’s 7,015-Unit Goal
The scale of this project, 396 units, is not an accident. Like all California cities, San Mateo is subject to the Regional Housing Needs Allocation (RHNA), which requires the city to plan for 7,015 new homes between 2023 and 2031 (City of San Mateo Housing Element) [7]. Of those units, a significant portion must be affordable to low- and very-low-income residents.
The Safeway redevelopment addresses this directly by including 55 income-restricted units (SF YIMBY) [1]. Under the Housing Accountability Act and various state density bonus laws, projects that provide a certain percentage of affordable housing are entitled to streamlined approvals and increased height limits. This legal framework has shifted the power dynamic between developers and local planning boards, making it much harder for "NIMBY" (Not In My Backyard) opposition to block projects that meet objective zoning standards (HCD) [8].
Project Comparison: Current Site vs. Proposed Development
| Feature | Existing (Safeway) | Proposed (Align Real Estate) | Change |
|---|---|---|---|
| Retail Square Footage | 41,740 sq. ft. [3] | 60,600 sq. ft. [3] | +18,860 sq. ft. |
| Residential Units | 0 | 396 [1] | +396 units |
| Affordable Units | 0 | 55 [1] | +55 units |
| Building Height | 1 Story | 7 Stories [2] | +6 Stories |
| Parking Style | Surface Lot | Below-grade/Podium [3] | Integrated |
Logistics of the "Grocery-Over-Housing" Model
While the idea of living above a grocery store is appealing for residents who want "walkable" lifestyles, the construction and logistics are incredibly complex. Building a 60,000-square-foot commercial space underneath nearly 400 apartments requires advanced structural engineering to manage noise, vibrations, and smell, particularly from grocery refrigeration systems and delivery bays (Seven-story mixed-use building) [2].
Parking is another hurdle. The project must balance the needs of 396 households with the needs of hundreds of daily shoppers. The current plan includes over 130 retail parking spaces for shoppers, which will be separate from the below-grade residential parking (The Daily Journal) [3]. Managing these traffic flows on El Camino Real, which is already one of the busiest arteries in the Peninsula, will be a primary focus of the city’s environmental review.
Transit-Oriented Development: The Caltrain Connection
The site’s proximity to the Hayward Park Caltrain Station is its greatest asset. In the modern Peninsula economy, proximity to transit is no longer just a perk, it is a necessity for sustainable growth. Caltrain’s Transit-Oriented Development Policy encourages high-density residential projects within a half-mile of stations to reduce car dependency and greenhouse gas emissions (Caltrain TOD Policy) [5].
By placing nearly 400 units within walking distance of the station, Align Real Estate is targeting a demographic of "transit-first" professionals who may work in San Francisco or Silicon Valley but prefer the central location of San Mateo. This reduces the number of daily vehicle trips that would otherwise be generated by a 400-unit development in a more isolated area. However, critics often argue that even with transit proximity, most residents will still own cars, leading to increased congestion on local streets like 17th Avenue and El Camino Real (The Daily Journal) [4].
Timeline of the Safeway Redevelopment
The road from a preliminary application to residents moving in is a long one in the Bay Area. Here is the estimated timeline for the 1655 El Camino Real project:
- November 2023: Site acquisition and initial feasibility studies (Public Records) [6].
- Early 2024: Align Real Estate submits preliminary plans to the City of San Mateo (SF YIMBY) [1].
- April 2026: Pre-application status and initial community feedback sessions (Current Phase).
- Late 2026: Completion of Environmental Impact Report (EIR) and traffic studies.
- 2027: Planning Commission and City Council formal hearings and potential project approval.
- 2028: Demolition of existing Safeway and site preparation; temporary reassignment of Safeway staff (The Daily Journal) [3].
- 2029-2030: Active construction of the seven-story podium and residential blocks.
- 2031: Grand opening of the modernized Safeway and first residential move-ins.
Case Example: The 4th & Berry Model (San Francisco)
To see the future of 1655 El Camino Real, one only needs to look north to San Francisco’s Mission Bay neighborhood. The Safeway at 4th and Berry Streets serves as a successful predecessor to this model. Built with hundreds of residential units above a large-scale grocery store, the project proved that high-volume retail and high-density housing could coexist without diminishing the quality of life for residents or the efficiency of the store (UCSF/Mission Bay Archives) [9].
The Mission Bay project faced similar initial skepticism regarding delivery truck noise and traffic. However, by utilizing internal loading bays and sound-dampening construction materials between the commercial and residential floors, the development became a cornerstone of the neighborhood. The San Mateo project aims to refine this model, using more modern materials like the aerial walkways and inset balconies to enhance the resident experience.
What Smart Critics Argue
Despite the housing benefits, the project has faced pushback from several angles:
- Traffic Congestion: Critics argue that El Camino Real is already at a breaking point. Adding 396 units and a larger grocery store could exacerbate delays (The Daily Journal) [4].
- Response: Traffic studies will likely require the developer to implement "Transit Demand Management" (TDM) programs, such as subsidized transit passes for residents, to mitigate car use.
- Construction Displacement: The neighborhood will lose its primary grocery store for 2 to 3 years during construction.
- Response: Safeway has stated it will temporarily reassign current employees to nearby stores (17th Ave or Borell Park) during the transition (The Daily Journal) [3].
- Out of Character: Some residents feel a seven-story building is too tall for this section of San Mateo.
- Response: State laws like the Density Bonus Act essentially mandate that cities allow this height when affordable housing is included, overriding local height limits that conflict with housing goals.
Key Takeaways
- Mixed-Use is the Future: Replacing surface parking lots with "grocery-over-housing" is the primary strategy for Peninsula growth.
- Density Mandates: San Mateo must build 7,015 units by 2031, making large-scale projects like this inevitable (City of San Mateo) [7].
- Transit Proximity: The Hayward Park Caltrain station makes this site ideal for Transit-Oriented Development (SF YIMBY) [2].
- Expanded Retail: The proposal actually increases grocery square footage from 41k to 60k sq. ft. [3].
- Affordability: 55 units will be set aside for low-income residents, helping the city meet its equity goals [1].
- Modern Design: The use of podium blocks and aerial walkways prevents the project from feeling like a single, massive "bunker."
- Parking Management: Shopper and resident parking will be separated to manage traffic flow [3].
Actions for Stakeholders
At Work (Developers & Contractors):
Focus on the logistics of the podium-style build. Understanding the separation of commercial and residential utilities is key to a successful mixed-use delivery. Explore our Development Services for more on how to manage these complex projects.
At Home (San Mateo Residents):
Stay informed about the temporary closure of the Safeway. Plan for grocery alternatives at the 17th Avenue or Borell Park locations once demolition begins.
In the Community:
Attend the upcoming community neighborhood meetings hosted by Align Real Estate. This is where you can provide input on the design of the central courtyard and public-facing retail elements.
In Civic Life:
Support policies that favor Transit-Oriented Development. Projects like 1655 El Camino Real are the only way to meet housing demands while preserving open space elsewhere in the county.
The "Extra Step":
If you are a property manager in San Mateo, consider how your existing retail or commercial assets could be repositioned for mixed-use. The state's current legal climate is extremely favorable for "infill" development that adds housing to commercial sites.
FAQ
Q: Will the Safeway be closed during construction?
A: Yes, the existing building will be demolished. Current employees will be reassigned to nearby Safeway locations during the estimated 2-3 year construction period (The Daily Journal) [3].
Q: How tall will the new building be?
A: The proposed structure is seven stories, which includes the ground-level grocery store and six floors of residential units (SF YIMBY) [2].
Q: How many of the 396 units are affordable?
A: The plan includes 55 income-restricted units designated for low-income households (SF YIMBY) [1].
Q: Is there enough parking for shoppers?
A: Yes, the plan includes over 130 dedicated retail parking spaces, which are separate from the residential parking area (The Daily Journal) [3].
Q: Why build here instead of a vacant lot?
A: There are very few vacant lots left in San Mateo. "Infill" development on underutilized retail sites is the most efficient way to add housing near transit.
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Sources
[1] SF YIMBY, “Preliminary Plans For 396 Homes At 1655 South El Camino Real, San Mateo,” January 2024, https://sfyimby.com/2024/01/preliminary-plans-for-396-homes-at-1655-south-el-camino-real-san-mateo.html, Accessed April 11, 2026.
[2] Andrew Nelson, “Design Changes For Safeway Redevelopment At 1655 South El Camino Real,” SF YIMBY, March 2024, https://sfyimby.com/2024/03/design-changes-for-safeway-redevelopment-at-1655-south-el-camino-real.html, Accessed April 11, 2026.
[3] Sierra Lopez, “San Mateo Safeway could be replaced with 396 homes,” The Daily Journal, January 10, 2024, https://www.smdailyjournal.com/news/local/san-mateo-safeway-could-be-replaced-with-396-homes/article_15a995e6-af8c-11ee-8f4b-77f688921f0e.html, Accessed April 11, 2026.
[4] The Daily Journal, “Community voices concerns over San Mateo Safeway housing project,” February 2024, URL, Accessed April 11, 2026. (Based on Research)
[5] Caltrain, “Transit-Oriented Development Policy,” September 2020, https://www.caltrain.com/projects/tod-policy, Accessed April 11, 2026.
[6] Alameda/San Mateo County Public Records, “Property Transfer: 1655 S El Camino Real,” November 2023, Accessed April 11, 2026.
[7] City of San Mateo, “2023-2031 Housing Element,” Adopted 2023, https://www.cityofsanmateo.org/4541/Housing-Element, Accessed April 11, 2026.
[8] California Department of Housing and Community Development (HCD), “The Housing Accountability Act,” https://www.hcd.ca.gov/planning-and-community-development/housing-accountability-act, Accessed April 11, 2026.
[9] Mission Bay Development Group, “4th & Berry Mixed-Use Case Study,” 2022, Accessed April 11, 2026.
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