San Mateo-based developer The Castle Group is begin this week ona complete conversion of the 95-year-old plant on Bush Street intoloft-style homes. Developer AvalonBay Communities is building theapartment units.

Both companies are hoping to capitalize on San Jose's housingcrunch while integrating past architecture with modernconveniences. Castle Group vice president of development JimPollart says the project not only preserves the four existingbuildings, but also creates an urban neighborhood that appeals toboth local planners and potential buyers from the new economy.

Both the apartment community and the lofts will be available inthe spring.

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