SAN JOSE — A Bay Area group has bought a former fraternity house in downtown San Jose where a developer had once eyed, but never built, affordable homes.

The one-time fraternity house was bought for $3.25 million, according to documents filed on Sept. 4 with the Santa Clara County Recorder’s Office.

First Community Housing, acting through an affiliate, sold the property to the new ownership group. In 2020, First Community Housing paid $5.6 million for the fraternity house.

At one point, Sigma Nu Fraternity had operated a house for its Zeta Iota Chapter at the property, which is located at 155 South 11th Street, about a block from the main downtown campus of San Jose State University.

In 2021, First Community had proposed the development of a 91-unit, seven-story affordable housing proj

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