San Mateo is adding at least 128 rental units to its expanding downtown after the City Council approved a new housing project this week.
The council unanimously approved Gateway at 668 E. 3rd Ave. near downtown San Mateo, authorizing the construction of an eight-story residential building — two stories taller than the site typically allows — with 128 units, including 20 designated for affordable housing. The project replaces an existing one-story commercial building.
The height increase was made possible through a state law that gives developers the ability to build taller and denser than local zoning typically allows, in exchange for setting aside a portion of units as affordable housing.
San Mateo County remains one of the most unaffordable places to live in the country, with a low-income threshold of $109,000. San Mateo faces the county’s highest state-mandated housing target, requiring it to approve 7,000 new units by 2031.
The 128 units include 89 one-bedroom apartments, 33 two-bedrooms, five three-bedrooms and a single studio.
One resident said during the public hearing he was glad office space had been removed from the plans but was disappointed the project did not include retail. Developers said retail was not economically feasible.
Because the project sits within a quarter-mile of the downtown San Mateo Caltrain Station, the developer was able to bypass minimum parking requirements under state law, though the building will still include 73 off-street stalls and 140 bicycle parking spaces.
The project is being developed by Prometheus Real Estate Group, a San Mateo-based firm.
Mayor Adam Loraine highlighted the project’s design and size during the meeting, noting how it complements the downtown area and its proximity to mass transit.
“I feel like this project — while it may seem large depending on the beholder — is in a somewhat confined space and is using its footprint for an impressive number of residential units,” Loraine said. “I also appreciate what is being brought before us and the positives that can come from this number of housing units near the downtown train station.”
The project also comes ahead of Senate Bill 79, a new state law taking effect July 1 that allows denser, taller housing near transit and gives developers more flexibility to override certain local zoning restrictions.
With council approval secured, the project still needs to clear permitting before construction can begin.
Unlike in many cities where rezoning single-family neighborhoods has become a point of contention, San Mateo has largely focused its housing growth on former office, retail and commercial sites — including plans to add more than 1,600 units through redevelopments like Hillsdale Reimagined at Hillsdale Shopping Center and Bayshore Commons.
The approval of this latest project follows a November 2024 citywide, voter-approved change to zoning rules that raised height and density limits near transit. The shift pushed San Mateo’s total housing capacity to about 20,000 units — well beyond its state mandate — accounting for approved projects that might stall due to financing or other issues.
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