Developments Put Focus on Tenant and Transit

Ascent has a focus on outdoor entertainment amenities.

SAN JOSE—In a time when high density gives little margin for open space, one property in South San Jose does just the opposite. Ascent is a 650-unit apartment community developed by Shea Properties and its partner, Ivanhoé Cambridge . The community includes 650 luxury apartment units with a focus on outdoor entertainment amenities, including a pool, a courtyard kitchen and more than an entire acre of open space for residents to enjoy. Ascent is also located across the street from Village Oaks retail center with more than 320,000 square feet of neighborhood retail, including Target, Safeway , restaurants and boutiques. It is conveniently located off Highway 85 with access to the Cottle light rail station, Blossom Hill Caltrain and Kaiser Medical Center . Greg Anderson , senior vice president of multifamily development at Shea Properties, recently discussed San Jose’s appeal, housing demand, resident preferences, demographics and multifamily trends, regarding not only Ascent but the market in general. GlobeSt.com: What makes San Jose one of Silicon Valley’s most sought-after neighborhoods? Greg Anderson: San Jose is ideally situated to capture employment due to continued business expansion in cities along the Peninsula and San Francisco. It sits at the epicenter of the tech industry with access to a highly educated, skilled and affluent employment base. In addition, San Jose is near a host of regional amenities, including academic institutions ( San Jose State, Santa Clara University, Stanford and UC Berkeley ), an international airport, and exceptional retail and entertainment venues such as Village Oaks center, Santana Row, Valley Fair and SAP Center (home of the San Jose Sharks). GlobeSt.com: How is San Jose responding to the demand for housing? Anderson: San Jose is actively urbanizing and densifying suburban areas of the city, marrying employment to housing. Downtown San Jose has been a focus for additional housing via high-rise and mid-rise condominiums and apartment buildings. GlobeSt.com: What are some of the key trends in multifamily? Anderson: The trend now in the multifamily industry centers around resident amenities. It used to be that your apartment was simply a place to live and sleep. You still needed to travel to the local gym, coffee shop, bar, etc. More and more, developers are including these amenities on-site. At Ascent, for example, residents can take advantage of the state-of-the-art fitness facilities, a resort-style pool and spa with cabanas, a resident lounge and gaming room, office pods that provide a place for telecommuters to work, a half-acre village green and a pet spa. These amenities help set us apart from our competitors while at the same time making life a little more convenient and fun for the residents. GlobeSt.com: What demographics does Ascent target and why? Anderson: Ascent reaches a diverse employment base compared to communities located further north. Services, technology and healthcare sectors represent 60% (and split even shares) of Ascent’s resident base, while properties in North San Jose rely on an extremely high concentration of tech jobs. Diversity in employment helps protect against economic slowdowns in specific sectors and/or corporate relocations. Other than employment, Ascent’s demographics are similar to comparable class-A properties in the Bay Area. The average age of adults is 36, average household income is in the mid-$100,000s and monthly rent-to-income ratio is about 20%. These demographic ranges have proven to be indicators of strong property-level performance in this market. GlobeSt.com: Do residents in San Jose prefer location or amenities? Anderson: Location is always important; however, properties can certainly differentiate themselves with a strong amenities package. Although Ascent is located further south in the city, the commute to most business hubs is manageable due to its proximity to major highways and the light-rail system. So as long as there are no barriers to the location, an on-site amenities package like that being offered at Ascent, can truly set you apart from the competitive set while fostering a sense of community among the residents, and providing a level of convenience that multifamily properties of the past did not offer.