Bay Area Real Estate Developers Continue Projects Amid Market Changes

Written by: Grant Berman

The Bay Area real estate market has faced some difficulties in the past months, as the market continues to fluctuate, providing no certain light at the end of the tunnel. Despite this, some of the area's industry leaders are doubling down, with plans of new developments in a variety of asset classes.

Exciting Developments in the Works

Industry powerhouse, Related California, secured $690 million in construction financing for a new residential development in Santa Clara. Related California is calling this project Tasman East, with the hopes of creating one of the nation’s largest mixed-use developments.

This project should be a great value-add for the community, as the 240-acre mixed-use project will include a total of 4,500 housing units, a 10-acre park, various dining and retail options, as well as additional office spaces.

Otera Capital provided a $360 million loan for the development of a 509-unit luxury community. PNC Bank is providing $130 million in financing, along with help from Welltower Inc., who is providing an additional $200 million for the seven story senior housing development.

Minkoff Group was recently approved by Sunnyvale City Council for a 125,000-square-foot office project. This is coming off of the news last quarter, where Sunnyvale’s office market had the second-lowest vacancy rate at 4.1% compared to the rest of Silicon Valley submarkets.

If and when completed, not only would this project continue the growth of the city’s downtown, but it would mark as the area’s first mass-timber building. Sunnyvale is not unfamiliar territory for the Minkoff Group, as they currently have a 180,000-square-foot office building under construction which is planned to be completed in the first quarter of 2023.

Steve Reilly of 330 Land has proposed a new housing development for South Fremont Bart Station, on behalf of LLCs affiliated with James W. Lopes, a former Fremont resident who passed back in 2019.

The proposal submitted on August 17th, includes the plans for roughly 500 multifamily units, and 64 townhomes. All of the townhomes and 212 of the multifamily units are set to be built on Lopes Road, while the remaining 213 multifamily units are planned to be constructed on a vacant site on Warm Springs Blvd.