Silicon Valley Community Scores $58M Refi

Latitude 37. Image courtesy of JLL

Pacifica Enterprises has received $57.5 million in financing for Latitude 37, a 172-unit luxury apartment community in southern San Jose, Calif. JLL arranged the 10-year, fixed-rate non-recourse loan on behalf of the borrower through a correspondent life company lender, according to a statement by the brokerage.

READ ALSO: Inside the Bay Area’s Dynamic Investment Market

Loan proceeds were used to refinance and consolidate the two existing construction and agency loans for the two-phase property. Senior Managing Director Aldon Cole and Analyst Daniel Pinkus led the JLL Capital Markets team that represented the developer.

Located at 1255 Babb Court, phase one was completed in 2012. Pacifica Enterprises purchased the five-story building from U.S. Bank for $20 million in December 2013, after the lender acquired the underlying lien against the property, according to Yardi Matrix. The adjacent phase two was delivered last year at 1277 Babb Court.

Each phase of the community offers 86 units ranging in size from studios to three-bedroom layouts and averaging 1,116 square feet. Amenities include underground parking, a fitness center, swimming pool and spa.

The property enjoys easy access to State Route 87 (also known as the Guadalupe Freeway), less than 3 miles from downtown San Jose, and is considered part of the South San Jose neighborhood, a popular tourist and wine-tasting destination within Silicon Valley.

Pacifica Enterprises is a privately held real estate firm focused on the Western U.S. with a diversified portfolio of more than $1.2 billion in assets.

San Jose Going Strong

San Jose boasts a healthy multifamily market, driven by strong growth led by the information sector, according to a Yardi Matrix market report that was published this past May. Apartment rents grew by 3.5 percent year-on-year through March, outpacing the national average by 30 basis points, and were projected to rise by 2.4 percent in 2019.

In August, Acquity Realty Inc. received $67 million in joint venture equity and construction financing for a six-story, mixed-use development in the city’s downtown. Located at 477 S. Market St., The Firestone will feature 130 apartments.