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Garden Gate Tower San Jose, Ca EXECUTIVE SUMMARY GARDEN GATE TOWER SAN JOSE, CA A 290-UNIT RESIDENTIAL DEVELOPMENT IN DOWNTOWN SAN JOSE EXECUTIVE SUMMARY Cushman and Wakefield, as exclusive advisor, is pleased to present the opportunity to acquire a 100% fee simple interest in a development site for ±290 residential units in the heart of Silicon Valley. The property is called Garden Gate Tower and is located in Downtown San Jose at 600 S. 1st Street & 618 1st Street. Silicon Valley is home to some of the region’s most prestigious technology companies with an existing infrastructure geared for growth. Garden Gate Tower’s location provides excellent access to the area’s new transit center at Diridon Station, where Caltrain, Light Rail and soon BART, will meet for the first time and provide transit access to anywhere in the Bay Area. INVESTMENT HIGHLIGHTS RARE SILICON VALLEY DEVELOPMENT SITE This site is underway for a 290-unit residential development in one of the most housing-starved markets in the U.S. Since 2011, Santa Clara County has added 250,900 JOBS and only 50,501 HOUSING UNITS, creating a housing crisis. Silicon Valley municipalities have been reticent to add housing politically which has led to a tremendous lack of housing supply, which has led to a price increase. UNPARALLELED CORPORATE INTEREST In the last 12 months San Jose has seen unparalleled activity for corporate office tenants. Google has purchase $350 Million of land to facilitate a new eight million square foot campus. WeWork has started almost 500,000 square feet of acquisitions, all while Adobe is starting to construct their brand new 600,000 square foot tower. In addition, the Jay Paul Company has commenced an acquisition spree of up to $400 Million with hopes of constructing over four million square feet of new office space. ZILLOW RANKS SAN JOSE #1 Zillow recently ranked San Jose as the #1 residential market in the country, with the highest median home value ($1,128,300), highest median rent ($3,514), highest year-over-year forecast increase (8.9%) and the lowest ratio of job openings per person (0.036). With projected income growth at 7.9%, continued job growth and a limited housing stock coming on-line due to the political process, San Jose’s housing market is poised to continue its rent and price growth. TREMENDOUS ACCESS TO NEARBY AMENITIES Downtown San Jose is experiencing a renaissance in recent years. Since 2011, the downtown core has added numerous restaurants and bars, adding to the atmosphere in downtown. Downtown also offers tremendous entertainment venues in the form of the SAP Arena, home to the Sharks, Center for Performing Arts, the California Theatre, the San Jose Civic Auditorium and the Improv Comedy Club. The downtown core also houses the San Jose Convention Center, which is home to a wide array of special events over the course of the year. HIGHLY EDUCATED AND TECH-FOCUSED WORKFORCE 47% of residents over the age of 25 have a bachelor’s degree or higher in Silicon Valley, which is significantly higher than the national average of 32%. In looking at the “Tech Stew” metrics produced by the Cushman and Wakefield national economists, Silicon Valley ranked #1 in knowledge workers (36%), #1 for percentage of workforce in tech (27.4% - compared with #2 San Francisco at 15%), which led to Silicon Valley being ranked as the #1 tech market in the U.S. UNPARALLELED ACCESS TO TRANSIT Downtown San Jose is quickly becoming the Bay Area’s transit hub as it is soon to become one of only two places (other being Millbrae) in the Bay Area where CalTrain and BART terminate in the same location. Combined with Light Rail and direct access to Silicon Valley’s major freeways, Garden Gate Tower sits in an unparalleled location for getting around. GARDEN GATE TOWER // 2 BUILDING OVERVIEW BUILDING DESIGN & FEATURES The Garden Gate Tower project is a multi-family project containing 290 residential units and 232 parking spaces in one 27-story tower on a ±18,000 SF site. The tower is approximately 288 feet tall. The gross area is approximately ±517,000 SF and the net residential area is approximately ±285,000 SF. The building uses type I-A construction. The exterior of the tower will be clad with a unitized curtain wall system. Operable awning windows, balcony and building doors will be integral to the system. Exterior balconies will have glass guardians to allow for maximum views. The lobby and rooms will have higher-end finishes commensurate with local competing rental projects. The parking garage is set below with parking levels starting at four levels below grade and extending up to Level 4. Amenities include a common outdoor terrace with other shared common amenity areas. Shell commercial retail space will be located at Level 1. OVERVIEW Site Area ±18,154 SF Unit Count 290 Parking 232 Parking Levels B4 - Level 4 Stories 27 Max Height 288 SF Proposed Height 288 SF TYPE NO. UNITS % SIZE Studio 46 15.4 588 1 Bed 176 69.2 992 1 Bed + 20 15.4 1107 2 Bed 40 0.0 1191 TOTAL 290 100.0 275,000 GARDEN GATE TOWER // 3 GOOGLE EFFECT SAN PEDRO SQUARE GOOGLE TARGETING DOWNTOWN SAN JOSE W. JULIAN STREET The City of San Jose and Google have entered exclusive SANTA CLARA STREET discussions regarding the addition of more than 8 million square feet of office and R&D space, which SAP DIRIDON STATION would serve as Google’s largest campus. CENTER DEVELOPMENT The area is being developed as the city’s central E. SAN FERNANDO STREET hub, with an extended reach drawing employees and visitors via several future transit investments; including FUTURE the addition of high-speed rail and electrification of the existing Caltrain route. DIRIDON SAN JOSE STATION CONVENTION Google has invested $125 M into several plots of CENTER land via Trammel Crow near the Diridon Station area and intends to buy a total of 240 acres to fulfill the company’s expanding requirements which will bring them to a total of $350 M in land purchases. 87 PROJECT SITE W. SAN CARLOS STREET 280 8M SF 15-20K 38% OF OFFICE SPACE EMPLOYEES SAN JOSE EMPLOYEES AUZERAISRESIDE LOCALLY AVENUE GARDEN GATE TOWER // 4 GOOGLE PURCHASES ADOBE ADOBE EXPANSION CURRENT ZONING & ENTITLEMENT SCHEDULE The Project is consistent with the site’s Envision San Jose 2040 General Plan Land Use / Transportation Diagram designation of Downtown which allows for a mix of uses and development at high intensities including the development of high-density residential development. The proposed commercial uses at the project site will provide a commercial use for the immediate neighborhood and the greater Downtown and will enhance the pedestrian interaction of the downtown area. The site’s current zoning, Downtown Commercial, allows for the project’s intended use. A site development permit and a supplemental EIR are required for project commencement. Both the site development permit and the EIR are being processed through the Planning Commission and the CIty Council. We anticipate obtaining a site development permit in April 2019. PROJECT SITE SDP APPLICATION AND EIR ARE IN PROCESS GARDEN GATE TOWER // 5 VICINITYGARDEN GATE TOWER / SAN AERIAL: JOSE, CA CIRCULATION The Place A.02 VICINITY AERIAL : CIRCULATION SAN JOSE CONVENTION CENTER THE PIERCE SPARQ NEW 230-UNIT NEW 105-UNIT APARTMENTS/RETAIL APARTMENTS UNDER CONSTRUCTION GUADALUPE RIVER TRAIL SITE MARKET GATEWAY 54 LUXURY APARTMENTS ϮϴϬͳ SINCLAIR FWY N ARTERIAL ROUTE REGIONAL ROUTES PEDESTRIAN / BIKE PATH sdͳ>/',dZ/> C2K Architecture, Inc. 600 S 1st / San Jose, CAപ4 GARDEN GATE TOWER // 6.
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