SUNNYVALE, CA—Watt Companies purchased a 24.5-acre industrial campus two years ago with the intention to redevelop the site into a high quality, urban-infill residential village. Watt, the third developer to attempt the redevelopment of the property, acquired the property in 2014, after convincing then-land owner, Spansion Inc., and the city of Sunnyvale to place its trust in Watt's history and reputation.
With extensive knowledge in remediating and developing environmentally challenged properties, and significant re-entitlement expertise, Max Frank, division president of Watt Communities, then sought out a strong capital partner. He also worked to reassure the community and the Sunnyvale that redeveloping the property as a new residential development offered greater potential for quality of life and much-needed ownership housing, given the jobs/housing imbalance in the city. In late 2015, Sunnyvale approved an entitlement package for the project that included an environmental impact report that addressed the property's historical environmental challenges, allowing 450 homes in a neighborhood surrounded by some of Silicon Valley's most notable tech companies.
Frank tells GlobeSt.com: “We got out ahead of the environmental issues. Then we had to run around for capital on a Super Fund site. We got a general plan, zone change, EIR and a tentative track map for 1.8 units per acre. We did all of this in two years.”
Watt Companies and its capital partner sold the entitled project, The Vale, a new townhome community, for $186 million to new residential player, Landsea Holdings, the US subsidiary of one of China's largest builders. This recent transaction is one of the largest single Silicon Valley residential land deals in years and shows how valuable entitled residential sites can be in prime Silicon Valley locations. Frank also noted the deal evolved from an initial smaller sale between the two parties for one of The Vale's several villages.
“Landsea's appetite to grow their Northern California operation made this acquisition incredibly strategic. Their entire management team demonstrated professionalism and expertise, giving me the confidence they could execute on our vision and our commitments to the City of Sunnyvale.”
With five different floor plans, The Vale has contemporary kitchens, spacious walk-in closets, two-car garages, alternate room options and upgrades built with energy-efficiency in mind.
Frank continues to tell GlobeSt.com. “The Vale has an urban master plan feel with atypical amenities for Silicon Valley, meaning close to jobs.”
Indeed, the complex allows residents to bike to work or hop on Caltrain for a Saturday night in the city–numerous attractions are minutes away at The Vale. Attractive landscaping and the nearby Bay Trail along with more than a dozen nearby parks, give residents a good dose of nature.
SUNNYVALE, CA—Watt Companies purchased a 24.5-acre industrial campus two years ago with the intention to redevelop the site into a high quality, urban-infill residential village. Watt, the third developer to attempt the redevelopment of the property, acquired the property in 2014, after convincing then-land owner,
With extensive knowledge in remediating and developing environmentally challenged properties, and significant re-entitlement expertise, Max Frank, division president of Watt Communities, then sought out a strong capital partner. He also worked to reassure the community and the Sunnyvale that redeveloping the property as a new residential development offered greater potential for quality of life and much-needed ownership housing, given the jobs/housing imbalance in the city. In late 2015, Sunnyvale approved an entitlement package for the project that included an environmental impact report that addressed the property's historical environmental challenges, allowing 450 homes in a neighborhood surrounded by some of Silicon Valley's most notable tech companies.
Frank tells GlobeSt.com: “We got out ahead of the environmental issues. Then we had to run around for capital on a Super Fund site. We got a general plan, zone change, EIR and a tentative track map for 1.8 units per acre. We did all of this in two years.”
Watt Companies and its capital partner sold the entitled project, The Vale, a new townhome community, for $186 million to new residential player, Landsea Holdings, the US subsidiary of one of China's largest builders. This recent transaction is one of the largest single Silicon Valley residential land deals in years and shows how valuable entitled residential sites can be in prime Silicon Valley locations. Frank also noted the deal evolved from an initial smaller sale between the two parties for one of The Vale's several villages.
“Landsea's appetite to grow their Northern California operation made this acquisition incredibly strategic. Their entire management team demonstrated professionalism and expertise, giving me the confidence they could execute on our vision and our commitments to the City of Sunnyvale.”
With five different floor plans, The Vale has contemporary kitchens, spacious walk-in closets, two-car garages, alternate room options and upgrades built with energy-efficiency in mind.
Frank continues to tell GlobeSt.com. “The Vale has an urban master plan feel with atypical amenities for Silicon Valley, meaning close to jobs.”
Indeed, the complex allows residents to bike to work or hop on Caltrain for a Saturday night in the city–numerous attractions are minutes away at The Vale. Attractive landscaping and the nearby Bay Trail along with more than a dozen nearby parks, give residents a good dose of nature.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
