Windy Hill Property Ventures and Rockwood Capital purchased a 162-unit luxury condo building in San Jose for $83.5 million.
The Palo Alto and San Francisco-based real estate investor acquired Vespaio, a seven-story mixed-use property at 130 Stockton Street, According to the San Francisco Business Times. Seller is Hudson Company based in Campbell.
$515,000 per unit — That’s 16 percent lower than the average unit price of $610,000 for a San Jose apartment building last February, According to Costa.
Completed in 2020, the white apartment complex with brown corners includes a three-story podium containing 32,000 square feet of offices, shops and restaurants.
Vespaio is located north of Alameda, across the Caltrain tracks, across from the SAP Center, Diridon Station, and Google’s stagnant Downtown West Transit Village.
80% of the 162 apartments are leased. It is unclear how many offices and shops have been leased.
One of the project’s commercial tenants, Surfaceink, occupies 6,900 square feet through 2021, The Business Times and The Business Times reported. San Jose Mercury News. Since then, Vespaio appears to have added three new ground floor tenants, including Mayweather Boxing + Fitness, The Preserve and Cyclebar, totaling 5,100 square feet.
Earlier this year, Windy Hill, which owns and operates $550 million in Bay Area multifamily and commercial real estate, submitted preliminary plans to convert some of Vespaio’s offices and stores into 13 residential units, including nine live/work apartments and four studio. According to The Mercury News.
The office vacancy rate in downtown San Jose was 16.9 percent in the first quarter, according to Cresa. Silicon Valley, meanwhile, had a vacancy rate of 14.1 percent.
Cushman & Wakefield brokers Jason Parr, Scott MacDonald, Seth Siegel, John Hansen, Sydney Ladrech, Brayden Joel, Terry Daly and Dan McLeod arranged the sale and financing for the transaction.
read more
— Dana Bartholomew
