Saturday Stats: San Jose rents are stabilizing

This will be good news for a lot of folks. San Jose is one of the largest cities where rent growth has slowed down. The rate of increase has only been 0.6% in the last year (Sep 2015 - Sep 2016). Given that we have some of the highest rents in the US, hitting the brakes may not be a bad thing. The major downside is that this will likely delay some major development projects in San Jose.

Source: RENTCafe Blog

ROEM builds 200 new affordable homes at 295-acre Hitachi master-planned community in San Jose

It is not easy to find affordable housing in San Jose. The good news is ROAM is just wrapping up 200 new affordable homes in South San Jose. The $46 million project is called Charlotte Park Apartments. The homes include several amenities including solar power, access to an outdoor BBQ, children's play area, a lounge, and a community kitchen/entertainment area. The bad news is that the project is already 100% leased. If you are in the market and meet the income requirements, it wouldn't be a bad idea to get on the wait list.

Charlotte Park is part of a much larger planned development that includes market-rate apartments, condos, townhomes, and a 10-acre park. For more info on Charlotte Park, have a look at the press release below.

$46 Million Charlotte Park Apartments’ 200 Affordable Multi-Family Residential Units Are 100% Leased and Near Completion

SAN JOSE, Calif. ― With the near completion of 200 new, affordable housing homes, the $46 million Charlotte Park Apartments in San Jose, Calif., is a great example of ROEM’s expertise in building a high quality affordable residential rental community located within a market-rate development. In this case, ROEM Corp. satisfied most of the affordable housing requirement of the Hitachi master-planned community, with ROEM Builders, Inc., acting as both general contractor and construction manager.

“While inclusionary housing policies provide a major source of funding for affordable housing, they can significantly reduce a developer’s return and create long-term obligations,” said Alex Sanchez, Executive Vice President of ROEM Corporation. “Our market-rate developer partners recognize the benefits of having ROEM act as their third-party general contractor. We assume their affordable housing obligations and pay the in-lieu fees while designing and building high-quality affordable housing that seamlessly blends with their market-rate housing. About 430 of our more than 3,000 new affordable housing units completed since 2000 were built by ROEM for a market-rate developer.”

Located on the former Hitachi Global Storage Technologies campus, Charlotte Park is part of a 295-acre master-planned community that will include condominiums, apartments, attached townhomes, many pocket parks, and a large 10-acre park with a baseball field. Charlotte Park is situated near the intersection of Cottle Road and Highway 85, and within walking distance from the Blossom Hill Caltrain station and the Cottle and Santa Teresa light rail stations. This $46 million development with the construction and permanent financing provided by Citi is affordable to families that make 60 percent or less of the Santa Clara County Area Median Income and provides an amenity-rich residential experience.

“Charlotte Park provides a safe haven to those who are being squeezed out of quality housing in Silicon Valley,” said Jay Abeywardena, Director at Citi. “We are excited to help support this initiative and believe this project will have a meaningful impact on the community.”

Charlotte Park Apartments gained an efficiency of management thanks to two other ROEM developments – Oak Grove Apartments and LEX Apartments – being constructed simultaneously within about a half-mile radius. Although these are separate projects managed by separate teams, ROEM was able to share resources from time to time because of their close proximity.

“With Alliant’s investment of nearly $15 million, Charlotte Park Apartments will provide an additional 200 units of much needed safe and affordable housing to the San Jose Area,” said Brian Goldberg of Alliant Capital, Ltd. “We are proud to be a partner in the development of this property and excited for the residents who will benefit from it for years to come.”

With ROEM’s emphasis on sustainability, Charlotte Park will be pursuing USGBC LEED Gold certification. Because both solar thermal heating and solar photovoltaic power sources are being installed, Charlotte Park has the potential to save up to 85% on utility bills when compared to electric water heating. Per LEED standards, all apartments have high-efficiency flush toilets and faucets as well as “Evolve Roadrunner” showerheads that are thermostatically controlled. In addition, Charlotte Park integrates efficient landscape design by using native species and zero turf on a lot designed to capture and treat all stormwater.

The amenity-rich, four-story apartment building (with 230-parking space garage) includes a courtyard with outdoor barbecue, dining area, tot lot and lounge area; community room with media alcove, kitchen and entertainment area; storage area; homework and computer room; and laundry facilities. Apartments will be equipped with Energy Star refrigerators and dishwashers, blinds, carpet, coat closets, and electrical four-burner stove/ovens.

With completion slated by the end of June, Charlotte Park is already fully leased.

About ROEM Corporation
ROEM Development Corporation, ROEM Builders, Inc., and their affiliated entities are a full-service development and construction organization that has specialized in the acquisition, planning, financing, new construction, renovation and asset management of market-rate and affordable housing throughout California for more than 30 years. Ranked in Affordable Housing Finance magazine’s Top 50 Affordable Housing Developers of 2015 list and a registered member of USGBC and Build It Green, ROEM is dedicated to creating wholesome communities that are not only sustainable but also designed smarter to ensure that residents are healthier, happier and safer. ROEM has completed more than 3,000 affordable housing units with more than 1,000 units currently under construction. For more information, visit www.ROEMcorp.com.

The 9 largest rental developments completed last year in San Jose

San Jose's development efforts are focused more on jobs than housing these days, but lets not forget how much housing is still built in San Jose each year. In 2015, the 9 largest rental projects in our city added 2,317 new apartments to San Jose. To see which projects made the list and take a peek inside each of these developments, head to this blog post.

Source: RENTCafe

Huge development project proposed at former Garden City Casino site in West San Jose

When Garden City Casino moved their operations to M8trix, it left a huge land redevelopment opportunity behind. Now two developers are planning to build a mixed-use center on the 15-acre lot. The project would have around 300,000 SQFT of office, 870 apartment units, 15,000 SQFT of retail, and a 1.5-acre park. It would be the largest project built in West San Jose in a very long time.

Since San Jose has such a large imbalance of housing and jobs, I'm glad it sounds like a balanced proposal where the office side of the equation is not an afterthought. It would be nice to have a bit more retail included, especially since the project fronts Saratoga Avenue.

One unfortunate casualty would be Harry's Hofbrau, which has become a craft beer hotspot in recent years. The restaurant has been there for 36 years. At least they would look to either relocate in the neighborhood or use some of that new retail space after the project is complete.

It should take less than a year for project approvals to go through and construction is expected shortly thereafter.

Source: SVBJ

Saturday Stats: San Jose has #4 Highest 1BD Rents in the US

I'm not sure if this is good news or bad news. At $2,230 per month, San Jose had the 4th highest rent in the nation for one bedroom apartments in August. The positive way to spin this is that we did not have the #1 highest rent in the nation. San Francisco took that prize with a median rent of $3,500 a month. They were followed by New York with $3,100/mo and Boston at $2,250/mo. I have a feeling that some of the fancy new apartments Downtown will be driving this metric up over the next couple years.

Oh, and if we look at % change in rent this year for one-bedroom apartments, San Jose comes in at #5 in the nation with a 14.9% increase. Oakland was at the top of that list with 20% and San Francisco was 8th at 12.9%.

Source: Zumper, hat tip to Barclay Livker

% Changes This Year

1. Oakland, CA – $1,980 (+20%)
2. Austin, TX – $1,170 (+17%)
3. Kansas City, MO – $770 (+16.7%)
4. Sacramento, CA – $900 (+15.4%)
5. San Jose, CA – $2,230 (+14.9%)
6. Atlanta, GA – $1,250 (+13.6%)
7. Dallas, TX – $1,190 (+13.3%)
8. San Francisco, CA – $3,500 (+12.9%)
9. Chicago, IL – $1,920 (+11.6%)

Saturday Stats: Rents Are Still Sky-High in San Jose

While there was some talk last year about rents starting to stabilize, the numbers in Zillow's latest studies show otherwise. In fact, there was a painful 13.4% increase in rents year-over-year from January 2014 to January 2015. Here are some other tidbits regarding the San Jose rental market:

• In San Jose, the median rent is $3,179 and rent is expected to increase 11.79 percent annually. 
• San Jose renters pay 39.4 percent of their income on rent each month, assuming the median San Jose income. 
• San Jose permitted just 294 new units for every 1,000 new residents from 2012 to 2013, according to Zillow.
• The Breakeven Horizon shows renters should consider buying in San Jose if they plan to live there for 2.7 or more years. 

For more info, head over to the Zillow article entitled: The Rent is Still Too Damn High -- And Getting Higher

Construction Starting on LINQ at Berryessa

The first market-rate apartments near the Berryessa BART station are about to break ground! Called LINQ at Berryessa, the project will have 230-units and is sitting on land that used to be zoned as industrial. Two affordable projects have already been built in the area and another 140-unit market-rate project is going to be built a kitty corner from LINQ.

In addition to being a short walk away from BART, LINQ will also have 12,000 SQFT of retail space which will likely be used for restaurants. For more info, hit the source link below.

Source: SVBJ

Tallest North San Jose Apartment Project Ever Moves Forward

After eight years of stalls and delays, the Century Center Towers project is getting a new push. Barry Swenson Builder is now partnering with Essex Property Trust to get two 12-story residential towers built at 1733 N. 1st St. The location is near the old Sony campus and Casino M8trix, and has convenient access to both light rail and Highway 101.

Century Center Towers will have 376 apartment units and will cost $170 million to build (including land costs). There were no special incentives or fee reductions here, and the land is already being prepped for construction.

This is the first San Jose residential high-rise building to be built outside of Downtown San Jose. I don't think it will be the last. This is a strong sign of increasing density in San Jose, and a new push to build in transit corridors. Hopefully more corporations (like Samsung) will employ this model as well as opposed to your traditional sprawled out office campuses.

Source: SVBJ

Another Apartment Project Proposed for Midtown

Fairfield Residential is proposing yet another dense project for midtown over at 800 W. San Carlos where the Cheim Lumber Yard used to be. Unfortunately there has not been much movement on previous projects such as the Ohlone (with 800 units). This new proposal is still in the very early stages, but they are shooting for 315 apartment units. You can't make out too much from black and white drawing below, but it does look like the design will be more eye catching than many of the apartment projects that have been recently built. It kind of reminds me of The Pierce which will go up in Downtown's SoFA District.

The plans also include a respectable and appreciated 23,500 SQFT of retail/restaurant/office space on the ground floors oriented along West San Carlos. Lightrail will also be nearby, providing plenty of transit options thanks to a quick connection to Diridon. I really hope to see this come to fruition soon instead of linger like some of the other midtown projects.

Source: SVBJ

Saturday Stats: #1 Apartment Boom Town

SpareFoot ranked the top apartment boom towns in the US, and San Jose took the pole position on the list with San Francisco coming in 8th. The analysis looked at the total apartments per person, population growth, the percentage of people spending more than 35% of their income on rent (lower numbers are better), per-capita personal income growth, per-capita GDP growth, and growth in per-capita construction permits for new apartments. The article is an interesting read (especially on how Detroit made the list) and you can access it here.

The Way to San Jose
Here is SpareFoot’s ranking of America’s Top 15 Apartment Boom Towns, in descending order.

1. San Jose, CA
2. Austin, TX
3. Houston, TX
4. Grand Rapids, MI
5. Nashville, TN
6. Dayton, OH
7. Portland, OR
8. San Francisco, CA
9. Dallas-Fort Worth, TX
10. Oklahoma City, OK
11. Seattle, WA
12. Minneapolis-St. Paul, MN
13. San Antonio, TX
14. Des Moines, IA
15. Detroit, MI

San Jose’s continued job growth, along with its shortage of affordable entry-level homes, encourages younger workers to look for apartments, said Matthew Mahood, president and CEO of the San Jose Silicon Valley Chamber of Commerce.

“The apartment housing market has responded to this increased demand and has built and will continue to build new projects. In fact, there are two high-rise projects being built simultaneously in downtown San Jose that will provide for nearly 700 for-rent units in the next two years,” Mahood said.

Source: The SpareFoot Blog

Saturday Stats: San Jose Metro Ranked as #2 Top Performing Rental Market in the Country

We all know how expensive it already is to live in Silicon Valley today, but it looks like rents are continuing to climb. In 2013, the national average for apartment rent rose 5.1% to $1,093 per month. The list of metros across the country where rents appreciated the most was entirely dominated by the Bay Area. In fact, the region took the top 3 spots in the list, with San Jose coming in second:

• Santa Rosa Metro: 12.2% growth (average rent of $1,438)
• San Jose Metro: 10.1% growth (average rent of $2,153)
• San Francisco Metro: 9.8% growth (average rent of $2,044)

With the local economy and job market continuing to heat up and the demand for housing outpacing supply, we may see similar rent increases for 2014.

Source: SVBJ

Student Apartment Project Groundbreaking in June

While not as impressive as Centerra or One South, Symphony Development is planning a dense infill project targeting SJSU students at 51 N. Sixth Street. The site is a parking lot for the First United Methodist Church right behind the 12-story Art Deco Vintage Tower. The building will consist of 119 market-rate apartments spread across seven stories on a one-acre lot (the first two floors will be parking). The total price tag will be around $40 million.

I don't believe this project has a retail component, but the sketch below does look like it has a couple sections that would make ideal retail spots. They could simply be communal areas. There is some retail right in front of this building in the Vintage Tower, as well as tons of places to eat within a few blocks such as Ike's, ISO: Beers, Cafe Pomegranate, 4th Street Pizza, Punjab Cafe, and popular SJSU hangout spot SmokeEaters. There will also be a BRT station within a block or two. I think this will be a great addition to the neighborhood!

Source: SVBJ

More San Jose Luxury Apartments Break Ground

Below is a rendering of "Ascent," Shea Properties' latest apartment project. We are talking 650 units in South San Jose (former Hitachi campus) with an estimated completion of Spring 2015. The total project cost is going to be $200 million, making it quite an expensive development when looking at the unit count ($307k per unit). There will be one, two, and three-bedroom units and luxurious amenities such as saltwater pools, a yoga courtyard, and a community pizza oven.

Looks like nice project, I just wish there was an office component to it as well. We really need more jobs in South San Jose and more housing in North San Jose.

Source: SVBJ

Meridian Mixed-Use Retail Tenants

It looks like some of the retail for the Meridian Mixed-Use project in Midtown San Jose is already spoken for. Based on the image below the project will have:

• Chase Bank
• Chipotle
• Five Guys
• Subway
• A Yogurt Shop
• A Day Spa

Not too shabby for a five story apartment building. In the past a project like this would have likely not received any retail at all.

Source: credit goes to an anonymous poster, speak up in the comments if you want the credit =)

Buena Vista Midtown Senior Apartments

Construction is now well underway for the Buena Vista apartment project in midtown. I don't believe that I have mentioned this project before. Buena Vista will have 95 units available for those that are 55-years-old and and meet income qualifications. The community will have several amenities and activity programs to serve residents, and the locations is right between Downtown and Santana Row. The project should be ready by next summer and you can see the full construction schedule below.

Thanks Mark for sending this in!

Hours of Construction

The City of San Jose has issued permit approvals for this development requiring that construction activity and deliveries occur Monday - Friday,  7 a.m. to 7 p.m. Additional notification and City approvals may be provided, for specific activities to be conducted outside of these hours such as on Saturdays.

Project Schedule & Sequencing

Construction will begin Thursday, May 9, 2013 and complete in approximately September of 2014.

Dates are approximate. For more detailed notifications and updates, sign up for Email Updates.
1.  May 9-17, 2013: Demolition
2.  May-June 2013: Mass Excavation (The process of digging the subterranean garage), with approximately 1-2 weeks of compaction, subject to change.
3.  Summer 2013: Concrete Pumps and Pouring
4.  Fall 2013: 1st Phase of Underground Utilities- Equipment in the streets and compaction
5.  September 2013 - January 2014: Framing the Building, cranes and manpower, delivery of prefabricated framing
6.  December 2013-June 2014: Finishes - Building in full swing with various trades (plumbers, electricians, drywallers, etc.)
7.  Summer 2014: 2nd Phase of Underground Utilities
8.  Summer 2014: Final touches, paving, landscaping, cleaning 

Truck Routes (Deliveries & Hauling)

All large equipment and trucks will be directed to enter from the southeast corner of the site and exit by continuing west on West San Carlos Street; they will be directed through signage not to turn north on either Buena Vista or Willard Avenues. The northern-most lane of W San Carlos Street will be closed during construction and pedestrian detours will be posted.

Closing the traffic lane adjacent to the site maximizes the "buffer" of distance between construction activity and the residences to the northwest, north, and northeast.

A roadway easement has been issued during construction allowing Fiesta Lane, adjacent to the Senior Apartment Site, to be used during construction for staging or equipment, as long as access is afforded to Townhome residents and visitors at all times.

Parking

Core Builders will instruct subcontractors arriving on site to park throughout public streets in a 2 block radius around the site in order to avoid parking inundation to any single area. The subterranean garage will be available to accommodate some construction parking when it is completed by late 2013.

Construction Informational Meeting

This meeting was held on May 2, 2013 at 6:00 p.m., and 17 attendees signed the sign-in sheet at the meeting. Download the
Agenda/Handout from the May 2 meeting below.

construction_meeting_handout_5-2-13.pdf

Download File

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Contact Information

The Site Superintendent is Joel Hannagan of Core Builders. If you have questions or concerns regarding the construction of Buena Vista Midtown Senior Apartments on West San Carlos Street, please contact Joel at 408-373-0444 orjhannagan@thecorecompanies.com.

Main Point of Contact for Neighbors
Joel Hannagan, Site Superintendent: jhannagan@thecorecompanies.com, Cell: 408-373-0444 
Pieter Joosen – Project Manager, pjoosen@thecorecompanies.com Office Ph: (408) 293-9728 x36
Crystal Madeiros – Project Administrator, cmadeiros@thecorecompanies.com, Office Ph: (408) 293-9728 x17
Jim Feeley – Vice President of Construction, jfeeley@thecorecompanies.com, Office Phone: (408) 293-9728 x38

Mailing Address: Core General Contractor Inc.
dba CORE Builders
470 South Market Street
San Jose, CA  95113-2819

One South Market

Thanks to all those that came out to the Market Beer Co. to celebrate the ground breaking of One South Market! Hope you guys enjoyed the beers, I know I did. For those skeptical on whether our celebration was premature, here is the official press release from Essex properties which came out on Friday (good timing eh? ;)

PALO ALTO, CA--(Marketwired - May 31, 2013) - Essex Property Trust, Inc. (NYSE: ESS), announced today the purchase of a land parcel and commencement of construction on an apartment community located in downtown San Jose, California. The twenty-three story property will contain 312 homes and approximately 6,000 square feet of ground floor retail space. The Company expects the community to cost approximately $145 million and will begin leasing in the spring of 2015.

The Company has entered into a co-investment partnership with an institutional investor for the development of the community. The Company will have a 55% interest in the venture and will earn customary management fees and may earn a promoted interest.

Each home will have luxury finishes and floor to ceiling windows. Amenities at the community will include a lap pool, rooftop sun deck with BBQ area, state-of-the-art fitness center, Wi-Fi lounge, and clubhouse. The site is located in the heart of downtown San Jose near high paying jobs, shopping, restaurants, entertainment, and public transportation. Several commercial developments are underway or planned, as the city is seeking to incentivize employers to locate downtown. In addition, there are plans for a BART station across the street from our community which will connect downtown to San Francisco. One South Market scores 97 out of 100 on walkscore.com.

About Essex Property Trust, Inc. Essex Property Trust, Inc., an S&P 400 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages apartment communities located in highly desirable, supply-constrained markets. Essex currently has ownership interests in 166 multifamily properties with an additional 9 properties in various stages of development. Additional information about Essex can be found on the Company's web site atwww.essexpropertytrust.com.

Virginia Terrace Apartment Project

A brand new 238-unit apartment projects is going to be built in the area bound by East Virginia Street, Martha Street, South 5th Street, and South 6th Street. All of those units are going on a site that is less than 4 acres, so it is even more dense than it looks from the photos below. The project is just outside the Downtown core, but is close enough so that most of the residents will be utilizing Downtown's amenities. This looks like a great project for the area!

Source: Mark (from Think Bigger San Jose and Content Magazine)

Crescent Village Apartments is Open

The largest apartment complex to open in San Jose since the great recession is well into leasing and I imagine pretty close to being fully booked by now. This development contains 1,750 apartment homes and is close to the 1,400 tech companies in North San Jose--several within walking distance--as well as Light Rail, making that trip to Mizu Downtown pretty convenient. Their amenities include an impressive 5 acre park, pools and spas, a theater, and fitness facilities. Three more complexes next to Crescent Village will be opening in mid 2013 by the same developer, Irvine Company.

For more info, just continue reading the press release below.

Mayor Reed, Councilman Chu Celebrate Grand Opening of Crescent Village Apartment Homes

Community is Largest to Open Since Great Recession;

Part of Irvine Company’s Long-Term Commitment to Silicon Valley

San Jose, Calif., Sept. 25, 2012 — San Jose Mayor Chuck Reed and Councilman Kansen Chu joined executives of the Irvine Company and about 60 invited guests to celebrate the grand opening of Crescent Village Apartment Homes, the largest apartment community to open in years in Silicon Valley.

“I’d like to thank the Irvine Company for this significant investment in our community,” Reed told the audience gathered at Crescent Village for a grand opening party that included a red carpet entry and VIP tours of the community. “Crescent Village will provide new homes and amenities to accommodate our growing workforce in North San Jose.”

“The development of Crescent Village marks a remarkable milestone in North San Jose,” said Councilman Chu, who represents San Jose’s District 4, which includes Crescent Village. “I want to recognize and thank the Irvine Company for their investments in North San Jose, home to 1,400 global technology companies employing more than 55,000 people.”

With 1,750 apartments, Crescent Village is the most significant apartment community to open in Silicon Valley since the Great Recession. The community, which has been a draw for technology professionals, young couples and young families, is a sign of Silicon Valley’s resurgence as one of the strongest economies in the country.

The community is part of the Irvine Company’s expanding presence in Silicon Valley, where the company has provided premier offices and apartments for more than 15 years.

In all, the Irvine Company owns and manages 11 apartment communities with more than 5,500 units in Cupertino, Sunnyvale, San Jose and Redwood City. The company also owns and manages more than 3 million square feet of office space in Sunnyvale, San Jose, Santa Clara and Milpitas.

“We see our heritage of master planning as a perfect fit with the innovation economy of Silicon Valley, and Crescent Village is a reflection of that,” said Kevin Baldridge, president of Irvine Company Apartment Communities. “We believe our role and purpose is to serve San Jose and all of Silicon Valley by providing exceptional living and working environments and experiences.”

Crescent Village brings resort-style living and expansive amenities to North San Jose’s Innovation Triangle, the center of Silicon Valley.

Crescent Village is part of Vision North San Jose, a master planning effort by the City of San Jose to advance housing and employment by creating communities in walking distance to jobs, shopping and regional transportation.

The community is walking distance to operations of Cisco Systems Inc., Broadcom Corp., Altera Corp. and other major area employers. Crescent Village also is near the Valley Transportation Authority’s River Oaks light-rail station, which links to downtown San Jose and the rest of Silicon Valley.

Crescent Village’s amenities include five saltwater pools and spas, a fitness center, spin, yoga and aerobics rooms, a five-acre park, clubhouses, an Internet cafe and movie theater. For more information, please see www.CrescentVillageApts.com.

New Luxury Apartments in Japantown

A former La-Z-Boy furniture distribution warehouse on North 10th Street is going to be redeveloped into 166 luxury apartments by The Core Companies and Republic Urban Properties. They are going for the aesthetic of an urban boutique-hotel and plan amenities such as a pool with cabanas, game areas, a yoga room, conference rooms, and a community room. Construction could start next year and build-out would take between 14 and 16 months.

If that was not enough, the developer ROEM Corp is planning to start on a 106 apartment project in mid 2013 just a few blocks away. The increased population density will definitely help the Japantown community continue to thrive and expand.

Source: SJBJ

21-Story Residential High-Rise Will Break Ground in Downtown San Jose!!!

This is news I have been eagerly anticipating for years. Finally, there will be cranes in the air and the next generation of residential towers will rise Downtown!

KT Properties (Axis) and Essex Property Trust have filed a site permit for 285 apartment units in a quarter million sqft, 21 floor tower. There will be 6,000 sqft of retail on the ground floor and potentially more on the second floor. Amenities include a swimming pool and Jacuzzi on the 4th floor, a fitness room, community kitchen, and terraces on the 4th and 17th floors. The building will have 420 parking spaces, half of which will be underground.

Location wise, it could not be more central in Downtown. The tower will be on the corner of Santa Clara Street and Market Street, right across from San Pedro Square, 5-7 minutes from the HP Pavilion and Diridon Station, and a couple blocks away from Plaza de Cesar Chavez. The future BART station will be no more than a few blocks away. This is an uber-prime location that has been a parking lot for way too long. The impact will be dramatic.

If our rental market continues to stay hot over the next two years, you can expect the entire building to be leased within 3 months of opening. We all saw what the last 4 residential towers did for Downtown, imagine what these next ones will do. And yes, I did say ones with an s.

Barry Swenson Builder is also working on a 21-story tower of their own called The Carlysle. This building will be across the street from the San Pedro Square Market and be even larger at 347 units. In fact, I just saw an advertisement last week from Barry Swenson that featured the Carlysle with the caption "First downtown San Jose tower out of the ground since the great recession." They haven't filed their site permit yet, but that quote is definitely a good sign that it is going to happen soon.

As soon as either of these break ground, we'll have to have a celebratory meet-up at The SPSM.



Sources: SJBJ, The Registry