The Opportunity
A 190-Unit, Class “A” Mixed-Use Multifamily Community in Downtown San Jose, CA
PROPERTY INFO
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CONTACT Info
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San Francisco Office
1 Post Street, Suite 1000
San Francisco, CA 94104
With Gross Potential Rents at the property still 20% below peak levels in January 2020, The James offers long term investors a compelling opportunity to step into a best-in-class apartment asset at a historically low cost basis and participate in significant appreciation and rent growth as the market continues to strengthen.
7,265 Square Feet
RETAIL SF
190
UNITS
162,162 Square Feet
APARTMENT SF
98 North First Street San Jose, CA 95113
ADDRESS
2019
YEAR BUILT
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Senior Managing Director
Rachel.Parsons@berkadia.com
858.945.0992
CA BRE #01335449
RACHEL PARSONS
INVESTMENT SALES
THE JAMES
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Senior Managing Director
Brett.Betzler@berkadia.com
949.981.1196
CA BRE #01330214
BRETT BETZLER
98 North First Street | San Jose, CA 95113
Berkadia Institutional Solutions, as exclusive advisor, is pleased to present the exceptional opportunity to acquire The James Apartments, a 190-unit, newly-built and fully stabilized mixed-use apartment community in downtown San Jose, California.
Built in 2019, The James offers a rare opportunity for investors with a long-term thesis of market growth and recovery to acquire a Class “A” asset with Gross Potential Rents still 20% below previously achieved pre-Covid levels, and at a significant discount to new construction. With average in-place rents of roughly $2,900/month, the property offers luxury housing at an affordable price point appealing to the broadest segment of rental demand with rents priced to just 85% of Area Median Income for Santa Clara County.
The property is located in Silicon Valley’s only urban center with a rapidly evolving downtown core and major investments by Jay Paul, Adobe, TMG, Boston Properties, Westbank and Sobrato clearly signaling Downtown San Jose as a strategic market for future growth. Google has also spent +$500 million on land acquisitions for a multi-billion-dollar transformational development that will include 7.3M square feet of office space near Diridon Station.
Downtown San Jose is one of the premier transit-oriented urban centers in the country, and The James offers access to a complete network of rail mass transit, including VTA light rail, Amtrak, Caltrain, and a future BART station across the street from the property giving residents access to the entirety of the Bay Area.
Gross Potential Rents 20% Below Previously Achieved Pre-Covid Rent Levels
1
INVESTMENT HIGHLIGHTS
2
Affluent In-Place Resident Demographics
Residents at The James have an average household income of $174,157, which is 5x the monthly cost of rent. Silicon Valley-dominated industries of computer science, biotechnology and healthcare comprise the lion’s share of employers at the Property, and includes companies like Google, Tesla, Apple, Amazon, Applied Materials, Adobe, Zoom, Western Digital, Stanford Healthcare and the Lucile Packard Children’s Hospital.
3
The Quintessential Urban Living Experience
The James offers walkable access to Silicon Valley’s only urban center with more restaurants, bars, entertainment venues and amenities than any other city in the South Bay or on the Peninsula, including St. James Park, San Jose State University and San Pedro Square Market – the city’s most popular dining, nightlife and shopping destination.
4
A True, Transit-Oriented Development
The James affords residents every conceivable commuter option, including VTA Light Rail, Amtrak, Caltrain, and a future BART station in downtown San Jose connecting residents to every job center throughout the Bay Area.
5
Downtown San Jose in the Midst of an Urban Revitalization
A transformative amount of investment is flowing into the Downtown San Jose market headlined by Adobe’s recent completion of a brand new 1.25M square foot office tower at its world headquarters and TMG/Boston Properties’ 1.1M square foot office project called Platform 16, both just a few blocks from the Property.
6
Outstanding Product Execution
The James was expressly designed to appeal to the luxury urban renter with top-of-the-market interior finishes and luxury common area amenities including a resort-style pool, clubhouse, 24-hour fitness center, dog washing station, private meeting rooms, and a dual courtyard design providing ample natural light and welcoming open space.
7
Price Point Positioned Units Offering a Significant Value to Neighboring Submarkets
With an average in-place rent of roughly $2,900 per unit, The James offers a compelling value proposition compared to properties in competing tech-driven submarkets of Palo Alto, Mountain View, Menlo Park and San Francisco, with at least $1,000 of headroom allowing for a steeper growth curve as renters are pushed from prohibitively costly markets and recognize the relative value, convenience and lifestyle offered by downtown San Jose.
853 Square Feet
AVERAGE UNIT SIZE
Senior Director
Kberghee@berkadia.com
808.754.0033
CA BRE #01986886
KAOHU BERG-HEE
Managing Director
Andy.Ahlers@berkadia.com
415.317.7707
ANDY AHLERS
Director
Joseph.Choi@berkadia.com
626.665.8850
JOE CHOI
Mortgage Banking
Contact
7,265 Square Feet
RETAIL SF
190
UNITS
162,162 Square Feet
APARTMENT SF
98 North First Street, San Jose, CA 95113
ADDRESS
2019
YEAR BUILT
853 Square Feet
AVERAGE UNIT SIZE
MORTGAGE BANKING
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