The historic tower in downtown San Jose is being purchased by veteran actual property firm Marin Impartial Journal
SAN JOSE – A downtown San Jose residential tower that is a historic landmark was purchased by a Southern California real estate company that specializes in shared apartments.
Vintage Tower, an Art Deco high-rise built in 1928, was purchased by an Avanath Capital Management-controlled subsidiary under Santa Clara County ownership documents filed on October 21.
The Apartment Tower deal is a new indicator that major investors have yet to quench their thirst for downtown San Jose opportunities.
Avanath Capital, based in Irvine, is an investment firm that purchases, owns, renovates, and operates a number of shared apartments in the United States that are affordable and affordable for typical workers, the company’s website says.
The 63-unit Vintage Tower is located across from San Jose City Hall and on a section of Santa Clara Street that is gradually attracting more investment and development interest.
“This is a beautiful old Art Deco apartment building,” said Mark Ritchie, president of Ritchie Commercial, a real estate company. “It’s a nice bookend for the De Anza Hotel on the west side of Santa Clara Street as far as the Art Deco style is concerned.”
Avanath Capital, through its subsidiary Avanath Vintage Tower, paid $ 17.3 million for the skyscraper, according to the county records.
CBRE Multifamily Capital, a unit of commercial real estate company CBRE, provided Avanath with $ 10.3 million in funding, according to real estate documents.
“Downtown San Jose is considered a safe haven for capital from across the country,” said Bob Staedler, managing director of Silicon Valley Synergy, a land use and planning consultancy. “The strength of the downtown San Jose market remains.”
Just a few doors away is Miro, a two-tower residential and retail complex, under construction on East Santa Clara Street between Fourth and Fifth Streets.
In September there were plans for the Eterna Tower, a 26-story high-rise apartment building at 17 E. Santa Clara St.
On the western fringes of downtown San Jose, Google has proposed Downtown West, a huge mixed-use neighborhood of office buildings, houses, shops, restaurants, and hotel facilities that the search giant could employ up to 25,000 people.
Adobe has dramatically expanded its downtown campus with a new office tower on West San Fernando Street.
Experienced and accomplished developer Jay Paul Co. started building a new office tower at 200 Park Ave. and intends to embark on a dramatic redevelopment of the CityView Plaza across the street. The Preservation Action Council of San Jose this week requested a court order to discontinue the CityView project.
The just-purchased Vintage Tower was originally known as the Medico-Dental Building when Development and Real Estate Patriarch Carl N. Swenson built the skyscraper in 1928, according to the Swenson website.
The deal for the historic apartment tower underlines and expands the activities in the urban core of the largest city in the Bay Area, said Ritchie.
“There’s a lot of money out there trying to buy apartments right now,” said Ritchie. “It is encouraging to see this continuing investment interest in downtown San Jose.”