Developer Z&L Properties Inc. has secured $330 million in financing for its 640-unit luxury condo project 188 West St. James, located in the heart of downtown San Jose, Calif. A JLL Capital Markets team of Brandon Roth, Charles Halladay and Taylor Gimian represented Z&L in arranged the five-year, floating-rate construction loan with Mack Real Estate Credit Strategies.
Construction is already underway at the sprawling development, which sits on roughly 2 acres on West St. James Street, near the corner of Terraine Street in the downtown area. 188 West St. James is situated adjacent to San Pedro Square and is a 10-minute walk from the SAP Center, where the San Jose Sharks NHL team plays.
The project, slated for completion in 2020, encompasses nearly 629,000 square feet of residential space across two towers. The condo development will also include about 30,000 square feet of ground-floor retail and more than 650 parking spots.
Condo units at the property will feature studio, one- and two-bedroom layouts, ranging in size from 516 to 1,505 square feet. Interiors will include stainless steel Bosch kitchen appliances, custom quartz countertops and white oak cabinetry. Bathrooms will feature custom floating vanities and porcelain tile flooring, while the main living areas will have hardwood flooring. Resident amenities at the building will include a swimming pool, spa, grilling area, fitness center, business conference center, pet wash and clubroom.
A rapidly growing market
San Jose’s downtown area has been rapidly developing over the last several months, fueled by the booming tech industry. The metro is one of the most rent-burdened in the country, but the highly skilled renters that reside in the San Jose area can mostly accommodate the high rents. Earlier this month, a partnership of Republic Urban Properties LLC and The Core Cos. sold LINQ, a 230-unit luxury community about 3 miles north of San Jose, to Stockbridge Real Estate for $103.8 million.