Greystone Provides $71M for San Jose Community
- Jul 10, 2018
Greystone provided a $70.8 Fannie Mae DUS loan to a developer to refinance the newly constructed 251 Brandon St. apartments in San Jose, Calif.
“251 Brandon is a transit orientated asset located right in the middle of the current Silicon Valley employment wave,” Cody Field, Greystone’s relationship manager, told MHN. “251 Brandon is a premier property in a premier market.”
The loan terms include a 10-year fixed rate, eight years of interest-only and a 30-year amortization period. The borrower, who had owned the land for years prior to construction, was especially interested in locking in a rate and closing the transaction quickly.
The developer, who was not disclosed, had a long laundry list of items that needed to be cleared before Greystone could secure the permanent financing.
“Greystone worked tirelessly with the borrower and their dedicated team to make sure that all items had been remedied prior to locking the rate,” Field said.
Located at 251 Brandon St., the property offers one-, two- and three-bedroom floorplans. The amenity rich asset appeals to the modern tech worker with features such as a modern fitness center, a substantial business center with private work stations, a conference room and an entertainment deck with full kitchen, TVs and barbecues that all overlook the pool and spa.
San Jose In Demand
The property is in North San Jose, which is less than 20 mins away from Google and Apple Headquarters, Cisco, Oracle, San Jose International Airport and Levi’s Stadium. In addition, the immediate surrounding area has a lovely park across the street and many high caliber restaurants within a short walk or light rail ride into down town San Jose.
Recent market reports reveal San Jose and the South Bay continue to be under supplied. According to Field, with vacancy at roughly 3 percent for the past 10 years, all new units are being absorbed as fast as they can be built.
“With tight local regulations, minimal opportunities to build and strong employers we will continue to see high demand for multifamily in this market,” he said. “San Jose’s rental market fundamentals are strong, with a bevy of job opportunities and many potential home buyers being priced out of the market.”
Greystone’s Northern California Advisory team also considered of Simon Herrmann and Todd Vitzthum.
In June, Greystone closed with investors on the $750 million Greystone Senior Debt Opportunity Fund, which is managed by the firm’s affiliate investment adviser and includes several institutional and large public pension fund investors.