Hines Buys Silicon Valley Asset for $74M
The property is part of a 2.5 million-square-foot mixed-use development.
Federal Realty Investment Trust has sold Levare, a 108-unit property in San Jose, Calif. An affiliate of Hines acquired the asset for $73.9 million, according to San Jose Mercury News.
Completed in 2011, the property consists of two buildings rising three and four stories. The community was 95 percent occupied at closing.
Apartments average 1,158 square feet with layouts including one- to three-bedroom floorplans. Units feature 9-foot ceilings and floor-to-ceiling windows, while common-area amenities include a business center, gym and courtyard, among others.
Located at 3003 Olin Ave., Levare is roughly 5 miles from downtown San Jose, inside Santana Row—Federal Realty’s 2.5 million-square-foot mixed-use property featuring retail, office and residential space.
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Santana Row’s residential component includes two other multifamily properties under Federal Realty ownership, according to Yardi Matrix data. The duo is Santana Heights, a 295-unit community, and the 212-unit Misora Santana Row.
Hines is no stranger to mixed-use developments. Its most recent venture includes a partnership with Healthpeak Properties to develop the residential component of a mixed-use project in Cambridge, Mass., that will blend multifamily, retail, research and lab space.
At the end of 2024, Hines had $90.1 billion worth of assets under management across 30 countries. Since 1992, it has acquired 636 assets totaling more than 260 million square feet across all major property types for an investment volume of $87 billion.
San Jose’s robust investment scene
Silicon Valley investment was healthy throughout 2024 with $1 billion in multifamily assets changing hands, according to a Yardi Matrix report. The volume grew by $100 million year-over-year.
The average price per unit clocked in at $434,956 in 2024, up 17.4 percent compared to 2023, the same source shows. Meanwhile, Levare traded for $684,259 per apartment, significantly above last year’s average.
Another Bay Area asset that changed hands this year—though more in line with 2024’s price per unit average—was Villages at Cupertino. The property traded for $442,735 per apartment. Rockpoint Group purchased the 448-unit community.
