Berkadia announced recently that it has brokered a ground lease for Phase I of Gateway Crossings, a 13.3-acre land site to be developed into a 1565-unit, garden-style, multifamily property in Santa Clara, California. Senior Managing Director Brett Betzler of Berkadia San Francisco brokered the 99-year ground lease on behalf of California-based Hunter Properties, Inc. Holland Partner Group will assume the lease. The deal closed on April 16.
“The initial plan was a fee sale, and we received a number of offers from great developers, but our client had also expressed interest in doing a ground lease, and several of the top bidders said that they would be open to it,” said Betzler. “Being in escrow through the pandemic, we learned that one advantage of a well-structured ground lease deal is its resiliency to short-term market volatility.”
“We’re incredibly optimistic about the long-term value of this development, and excited that through the ground lease structure we’ll still stay connected to it,” said Deke Hunter, President of Hunter Properties. “The Holland Partner Group is absolutely the right partner to bring this project to fruition and we’re thrilled to partner with them.”
Located at 1205 Coleman Avenue, Gateway Crossings is to be developed into a 1565-unit multifamily property. It is the residential component of a larger development by Hunter Storm, which includes the Avaya Soccer Stadium, home to the San Jose Earthquakes, and 1.425 million square feet of office space, occupied by Verizon Wireless and Roku. Gateway Crossings has direct access, via a pedestrian tunnel, to the Santa Clara Caltrain Station and to Santa Clara University, across the street. It is also less than two miles from the San Jose Airport.
Betzler joined Berkadia through Berkadia’s acquisition of the apartment brokerage practice of Moran & Company. The partnership launched Berkadia Institutional Solutions, powered by Moran, a platform dedicated to serving institutional investors nationally through Berkadia’s robust suite of services and resources combined with Moran’s strong institutional investor relationships.