Welcome to the New San Jose
The city 60 miles south of S.F. is at a turning point like never before, and that's why we are excited to host our San Jose State of the Market event at Westin San Jose on Oct. 23, starting at 7:30am.
Insight Realty Co managing partner Dennis Randall Jr., a panelist, believes San Jose is a key inflection point due to its natural advantages as a transportation hub. Here’s a rendering of Insight’s Museum Park as it would look from Park Avenue. Ground-floor retail and public spaces will connect to a 60k SF expansion of The Tech (left).
He also tells us the city has an outstanding opportunity to adjust its “industrial lands policy” to bring both jobs and housing to downtown and surrounding environments. Here’s a Museum Park bird’s-eye rendering. It’ll have 600k SF, with 210k SF of office on five floors; 185 residential units on 12 floors; two stories for a nationally branded boutique hotel; ground-floor retail; luxury penthouse residences up to 11,300 SF; and, 60k SF of expansion space for The Tech.
Sales of land and renovated campuses don't appear to be slowing anytime soon, Nanci Klein from the San Jose's economic development office told us this year. Nanci, who's a speaker, says San Jose is the largest city in the Bay Area, and with ample room to grow and the amenities and access employers and top talent are looking for, "we are seeing significant investment." Here she's snapped in front of a pic of One South Market's topping off last year—one of seven reasons Bisnow told you to be excited about San Jose.
SIMEON Properties CIO Mike Kim, also a panelist, tells us his 347-unit Centerra apartment building (pictured) is now complete and in leasing mode. Project costs (land, hard, soft and fees) have increased 45% in the past three years, Mike says, and rents have increased 35% during the same period. He also has tracked stabilized development yields from 7% to sub 6% in the same period.
Class-A multifamily CAP rates are high 3% to mid 4% in core locations, Mike says, and investors are prioritizing yields over per “pound” pricing. Here’s an exclusive shot of the Post Street tower that’s expected to wrap up in Q3 2018 with 203 units.
The SAP Center in downtown San Jose, above, was just picked as official host site of Super Bowl Opening Night. Trammell Crow SVP Don Little tells us he’s got 1M SF proposed downtown. On tap in San Jose: 1M SF of tech office, 325 luxury apartment units, and the historic preservation of the San Jose Water Co building. Don plans to plunk up to 65k SF of amenity retail in San Jose. Don't miss Don and others at our San Jose State of the Market event at Westin San Jose on Oct. 23, starting at 7:30am. Register now!
