Strada Plans 286 Homes on Palo Alto Office Site Bought for $29M

Strada Investment Group has filed a preliminary application with the City of Palo Alto to tear down a 60,000 sq ft office and life sciences building at 3350 West Bayshore Road and replace it with 286 homes: an eight-story, 261-unit apartment building and 25 three-story townhomes, according to SF YIMBY. Strada bought the 4.08-acre site from Alexandria Real Estate Equities for $29 million, a deal the parcel’s own property record lists as closing Dec. 17, 2025.

Why it matters

SF YIMBY reported the building was 73% leased at the time of sale, and Strada is tearing it down anyway. For anyone tracking office-to-residential conversions on the Peninsula, that is the signal: in this submarket, land value for housing now outruns rent from a partly occupied R&D building, even one bought months earlier. This is the second Strada site to flip from office to housing in the area, after a 145-home plan at 2100-2400 Geng Road, so the Bayshore corridor is becoming a pattern, not a one-off. See our San Francisco market coverage for the rest of the Bay Area pipeline.

The numbers

Strada paid $29 million for the site, per the parcel’s property record showing a Dec. 17, 2025 sale. The existing building is 60,000 sq ft; the site is 4.08 acres. The filed plan calls for 286 total homes: a 261-unit apartment building at eight stories and 89 feet, split 55 studios, 147 one-bedrooms and 59 two-bedrooms, plus 25 three-story townhomes. Full build-out totals 447,430 sq ft, 380,680 sq ft in the apartment building and 66,750 sq ft across four townhome structures. The plan includes 43 affordable units, and the application invokes Senate Bill 330 and the state Density Bonus law to secure zoning waivers.

What’s next

The preliminary application was filed May 1, 2026. Under SB 330, the standard preliminary-application window gives a developer 180 days to submit a complete application, a window that runs out on that filing date. No outlet has yet reported a complete application, a hearing date, or a city staff response. We will track the complete application and the first Architectural Review Board date once the city schedules one.