SAN JOSE—The demand for Bay Area multifamily is showing no signs of waning. At the bullseye of this demand is Silicon Valley, which struggles to house its ever-growing tech workforce.
MIRO, a pair of 28-story luxury apartment towers comprising more than 600 residences, is hoped to lessen the load ever so slightly. The project is due for completion in 2020 and will also include 20,000 square feet of retail and commercial space.
A $288.8 million construction loan was recently obtained for the project. The Holliday Fenoglio Fowler LP team worked on behalf of the borrower, Bayview Development Group, to secure the five-year interest-only construction loan through Broad Street Real Estate Credit Partners III, a fund managed by the Goldman Sachs Merchant Banking Division. The HFF debt placement team included senior managing director Charles Halladay, director Brandon Roth and analyst Jason Carlos.
“We look forward to watching MIRO transform the skyline of downtown San Jose and further the exceptional momentum that downtown San Jose continues to experience,” Halladay tells GlobeSt.com.
MIRO will have a mix of one-, two- and three-bedroom layouts, including 16 penthouses. Residences will have access to more than 50,000 square feet of amenities, including a rooftop pool, concierge services, fitness, spa facilities, pet facilities, fire pits and rooftop lounges, offering views of the city's skyline. The property's location at 167 E. Santa Clara St. in downtown has a Walk Score of 96 and is within steps of the future downtown San Jose BART station.
“There was a tremendous amount of enthusiasm from the lending community for this project, which is a testament not only to Bayview Development's best-in-class team, but also to downtown San Jose's bright future as one of the top real estate markets in Silicon Valley,” said Roth. “BSRECP III immediately recognized these traits and performed exceptionally well throughout the process.”
Bayview Development Group, headquartered in San Jose, is a privately held real estate development and investment firm focused on developing high-density mixed-use projects in Northern California.
Underscoring the need for housing is the razor-thin unemployment rate, which clocked in at 3% in October in the San Jose-Sunnyvale-Santa Clara MSA October 2017, down from a revised 3.3% in September 2017, GlobeSt.com learns. This compares with an unadjusted unemployment rate of 4.3% for California and 3.9% for the nation during the same period. The unemployment rate was 4.8% in San Benito County, and 3% in Santa Clara County. Between September 2017 and October 2017, combined employment in the South Bay counties of San Benito and Santa Clara rose by 9,600 jobs to reach 1.1 million, according to the California Employment Development Department.
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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.
