Stanislaus County to sell old Salvation Army center for more Modesto apartments
AI-generated summary reviewed by our newsroom.
- Supervisors may approve $1.5M sale of former Salvation Army site to Visionary.
- Visionary proposes Phase II with 77 affordable units plus 2 staff units for 30%-80% AMI.
- County will recoup its $1.25M purchase and require affordable housing delivery.
Stanislaus County leaders decided Tuesday to sell a former Salvation Army facility on I Street to a nonprofit home builder.
Sale of the property for $1.5 million could pave the way for a second phase of the six-story Seventh Street Village low-cost apartment complex, at Seventh and J streets in Modesto.
The county acquired the 625 I Street property in 2019 with a concept for remodeling the facilities for veteran housing or other purposes. But evaluations concluded that a project would not be feasible, said a staff report for Tuesday’s Board of Supervisors meeting.
The Salvation Army previously used the community center, at the corner of Seventh and I streets, to feed homeless people and provide other services.
County supervisors passed a resolution in August 2024 to declare the former Salvation Army community center as surplus property and notified the California Department of Housing and Community Development the property was available for affordable housing developers.
Visionary Home Builders of California, which is building the adjacent 79-unit Seventh Street Village complex, was the only developer to express interest in the 36,590-square-foot property. County supervisors approved an agreement for Visionary to purchase the site for $1.5 million. The county paid $1.25 million for it in 2019.
According to the staff report, Visionary has a proposal to develop the community center site as the second phase of Seventh Street Village. Visionary has told county staff it will use the 625 I Street parking lot for storing construction supplies and equipment while building Phase I of Seventh Street Village.
Exact details of a second phase of Seventh Street Village were not available from Visionary Home Builders. In a preliminary proposal to state HCD, the Stockton-based nonprofit said its proposal for the 625 I Street property was 77 affordable apartment units for households earning 30% to 80% of area median income, plus two housing units for staff.
Supervisor Terry Withrow said Monday when the county purchased the Salvation Army facility seven years ago it was part of considerations for creating the 180-bed low-barrier homeless shelter on South Ninth Street.
The transaction provided funds to help the Salvation Army open the low-barrier shelter, which served to move people out of a tent city near the Ninth Street Bridge.
“We thought we could potentially do something with the (Salvation Army community center) but in time we found out it wasn’t economically viable for us,” Withrow said.
He said the county will recover its $1.25 million and more through sale of the I Street property. It will also benefit the city of Modesto’s affordable housing project in partnership with Visionary Home Builders, Withrow added.
At the time the county purchased the I Street site, county officials said renovation of the community center could provide housing for families and young people threatened with homelessness.
Withrow said he was informed the second phase of Seventh Street Village will be a multi-story building with four floors for housing. The proposed purchase agreement with Visionary obligates the buyer to develop the property for affordable housing.
A financing plan for Phase II
During negotiations with the county, Visionary proposed a $1.5 million purchase price for 625 I Street, a 12-month escrow and a $1,500-per-month lease of the property during escrow to use the parking lot during construction. Under the agreement, the county will stop paying for security at the site.
“Visionary is partnering with the city of Modesto on (Phase I of Seventh Street Village) and plans to utilize the escrow period to complete its financing plan for a project at 625 I Street,” the county staff report says. If the Phase II project does not come to fruition, the county will keep the lease payments and a $10,000 escrow deposit, the report says.
Phase I of Seventh Street Village will have four stories of housing above a street-level garage at Seventh and J streets. It will be just a block from the Modesto downtown Transit Center, and future trains, and will tie into downtown’s emerging bicycle network. The project budget is $68.8 million, which is largely funded by a $32.3 million state Affordable Housing and Sustainable Communities program grant and $31.2 million in federal tax credits for investors.
Monthly rents will range from $512 to $1,895, depending on apartment size and household income. Applicants must make between 30% and 80% of Stanislaus County’s median income, which is $95,000 for a family of four. The complex could open in late 2027 with one-, two- and three-bedroom apartments.
This story was originally published January 6, 2026 at 5:00 AM.
