PCCP, LLC PROVIDES A $14.7 MILLION PREFERRED EQUITY INVESTMENT FOR THE DEVELOPMENT OF A 75-UNIT, CLASS A, APARTMENT PROJECT IN DOWNTOWN SUNNYVALE, CA
San Francisco, CA, March 25, 2019 – PCCP, LLC announced today it has invested $14.7 million of preferred equity, in joint venture with Bay West Development and Lane Partners, for the development of a 75-unit, Class A, multifamily community located at 311 S. Mathilda Avenue. The project site is located in the heart of Silicon Valley in downtown Sunnyvale and is walking distance to hundreds of shops and restaurants as well as the Sunnyvale Caltrain station and CityLine Sunnyvale, a planned $800 million mixed-use redevelopment featuring major retailers such as Target, CVS Pharmacy and Whole Foods (opening Fall 2019).
With groundbreaking set for this spring and anticipated completion in early 2021, the five-story apartment complex will include 4,860 square feet of ground floor retail which is expected to be occupied by a Denny’s restaurant.
“311 Mathilda is well located and poised to capture demand as the housing crisis in the Bay Area continues to drive apartment rents and values,” said Matt Cochran, vice president with PCCP. “We are extremely excited to partner with Bay West Development and Lane Partners which are both very well respected firms with deep-rooted knowledge and expertise in the Bay Area.”
311 Mathilda will offer a mix of studio, one-bedroom, and two-bedroom units as well as an attractive amenity package including an outdoor courtyard with a BBQ, dining terrace, fire pit, and lounge seating; a fitness center with an additional exterior courtyard for group activities or classes; a two-story tenant clubhouse; a rooftop deck and lounge and 54 bike parking spaces. Additionally, the project will feature high-end unit finishes including porcelain tile in the bathrooms, wood-grain vinyl plank flooring, European-style cabinetry, white quartz countertops, stacked Whirlpool washer/dryer and stainless steel appliances.
As the second largest city in Santa Clara County and the fifth largest city in the San Francisco Bay Area, Sunnyvale is one of the strongest multifamily submarkets in the Bay Area with 4.8 percent vacancy across more than 25,000 units and over 24 percent rent growth since 2013. The city benefits from proximity to Caltrain which provides convenient public transportation between San Jose and San Francisco, as well as access to some of the country’s top employers including Google, LinkedIn, Apple, Juniper Networks, YAHOO!, and AMD.
Bay West Development is a San Francisco-based, real estate development company which was founded in 1979 by Bill Poland. The company acquires and develops office, residential and retail investments in the greater Bay Area and has partnered with many well-known, institutional investors since the company was founded. Since 2010, the company has developed four residential projects totaling over 800 units in the Bay Area including Aire in San Jose, the Revere in Campbell, Maxwell in Oakland and Aster in Dublin.
Lane Partners is a commercial real estate investor, developer and operator with a specific focus on the San Francisco Bay Area. The company was formed in 2005 by Scott Smithers to acquire, develop and manage institutional quality real estate throughout Northern California. The expertise of the company lies in the ability to add value through physical rehabilitations, lease up, restructuring, entitlements and general repositioning of assets. This is PCCP’s second investment with Lane Partners.