Historic San Jose Building Transformed Into Affordable Housing

Habitat for Humanity restores and relocates 1910 Pallesen apartment building to provide four affordable units

Mar. 28, 2026 at 8:20pm

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Five years after the historic Pallesen apartment building was moved three blocks in downtown San Jose, Habitat for Humanity has completed its restoration and transformation into four affordable housing units. The 1910 building, designed by local architects Wolfe & McKenzie, was set to be demolished to make way for a high-rise development before being saved through a collaborative effort involving the city, nonprofits, and corporate partners.

Why it matters

This project highlights the challenges and rewards of preserving historic buildings in rapidly changing urban areas. By relocating and repurposing the Pallesen, Habitat for Humanity was able to not only save an architectural landmark, but also create much-needed affordable housing in a region facing a severe housing crisis.

The details

After the building was moved to a vacant lot owned by the city, Habitat for Humanity spent years transforming the railroad-style, one-bedroom flats into modern two-bedroom units. This involved removing, repairing and replacing the building's tin roof tiles, maintaining the original window casings, matching the stucco, and preserving quirks like porthole windows. A central stairway was also created out of the original twin staircases to increase the units' square footage.

  • On March 28, 2021, the Pallesen building was moved about three blocks to a vacant lot in downtown San Jose.
  • Five years to the day after the move, on March 28, 2026, Habitat for Humanity handed over the keys to the first residents of the restored four-unit building.

The players

Habitat for Humanity East Bay/Silicon Valley

A nonprofit organization that builds, renovates and preserves affordable housing, and was the driving force behind the Pallesen building's restoration and transformation.

Krys Morgenthaler

Chief development officer for Habitat for Humanity East Bay/Silicon Valley, who spoke at the grand opening ceremony.

Silvano Diaz and Aurora Martinez

The first residents who will be moving into one of the Pallesen building's two-bedroom units.

Carol Sisney

Whose grandparents, Jack and Agnes Reding, lived in one of the building's units starting in 1941 until Agnes' death in 1990.

Ash Kalra

California State Assemblymember who attended the grand opening ceremony.

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What they’re saying

“We're so proud to have given this building a new lease, or shall I say, mortgage on life. Not only are we preserving this building, we have transformed it into affordable ownership housing. That truly is a reason to celebrate.”

— Krys Morgenthaler, Chief development officer, Habitat for Humanity East Bay/Silicon Valley

“Standing here today in this home, I feel full of gratitude. This is more than just a house. It's a dream that took years of sacrifice, hard work and faith.”

— Elizabeth Diaz, Daughter of new residents Silvano Diaz and Aurora Martinez

What’s next

The new residents of the Pallesen building are expected to move in over the coming weeks, marking the completion of this historic preservation and affordable housing project.

The takeaway

This project demonstrates how historic buildings can be successfully repurposed to address pressing community needs, in this case providing affordable housing in a region facing a severe shortage. The collaborative effort between the city, nonprofits, and corporate partners shows what can be achieved when diverse stakeholders come together to save architectural landmarks and transform them into assets that benefit local residents.