Related Secures $690M to Build Santa Clara Apartment Towers

Related California, has secured $690M to finance the construction of 700 multifamily units in two apartment towers that represent the first phase of the company’s 240-acre, mixed-use Related Santa Clara development next to Levi’s Stadium, home of the San Francisco 49ers NFL franchise in Santa Clara.

The first phase, known as Tasman East and located at 2300 Calle De Luna, has received a $360M loan from Otera Capital for the development of a 22-story, 509-unit luxury apartment building.

The project also received a $130M loan from PNC Bank for a, 20-story, 191-unit senior housing complex. The senior housing will be built by Coterie, a joint venture of Related, Atria and Welltower.

When completed, Related’s 5.5-acre project will encompass 1,600 residential units, almost 20K SF of retail space and 16K SF of amenities, but it is only a fraction of the overall Related Santa Clara project.

The 9.2M SF Related Santa Clara project envisions 5.7M SF of office space, 4,500 residential units, a 700-room Equinox Hotel, 500K SF of retail and a 35-acre public park.

The massive mixed-use project, a partnership between Related Companies and the City of Santa Clara, bills itself as “an urban center for Silicon Valley designed for the Vision of Tomorrow,” according to the project website.

Amenities will include touchless, keyless building access and advanced air filtration and ventilation systems.

The Equinox Hotel planned for the Santa Clara development would be a “healthy living,” fitness-oriented hotel managed by Equinox, San Francisco 49ers NFL franchise.

Last week, Bloomberg reported that Related Companies is preparing to sell the Equinox Hotel it opened in Manhattan’s Hudson Yards in 2019 shortly before the pandemic began.

The company is said to be working with an advisor to solicit interest in the property, which includes office and retail space, and is hoping to sell the new hotel for more than $200M. Equinox is attached to a residential building at 35 Hudson Yards in the upscale mega-development.

The hotel rooms at the Equinox include a proprietary “sleep system” that features mattresses made entirely from natural materials, yoga accessories and a minibar stocked with vitamins, supplements and health-oriented snacks instead of booze, according to the hotel’s website. The pet-friendly Equinox also claims that all of the food offered at the hotel is informed by “cutting-edge research” by dieticians.

When the Equinox Hotel opened in 2019, Equinox Chairman Harvey Spevak said the company was planning to open a dozen hotels built around the brand known for its sleek design and upscale offerings, including potential projects in Seattle, Houston, Chicago, Miami and Los Angeles. Thus far, the Hudson Yards location is the only Equinox-branded hotel to be completed.