By Meghan Hall
Just as investor interest for office space in North San Jose has taken off, so has interest in apartment complexes and nearby residences as the region’s growing companies continue to drive employment growth and demand for housing. The Domain Apartments, a 444-unit complex in North San Jose, has been purchased by an affiliate of San Francisco-based Prime Residential, according to reporting done by The San Francisco Business Times. Developer Equity Residential sold the property for $255.5 million, or about $575,450 per unit.
Located at 1 Vista Montana, the complex sits at the heart of several major Silicon Valley tech campuses, including Cisco Systems, Lumentum, and Samsung Semiconductor. Numerous other technology companies have signed leases in North San Jose in recent months; Zscaler secured 172,000 square feet at 120 Holger Way, leasing its space from Boise, Idaho-based Micron Technology in May. In April, ASML signed a 265,000 square foot lease at 10 W. Tasman Dr. and 125 Rio Robles Dr., currently owned by DivcoWest. And, in a sign of its commitment to the neighborhood, Google purchased three buildings along N. First St. and Nortech Parkway for $137.5 million in May.
The complex is also located next to a small shopping center with several popular eateries such as The Coffee Bean and Tea Leaf, Panera Bread and Chipotle Mexican Grill. The Southbay Freeway and Interstate 880 are also nearby.
According to popular rental search site Apartments.com, the Domain Apartments complex, built in 2014, includes a variety of one-, two- and three-bedroom units. One-bedrooms rent for between $2,830 to $3,120 per unit, two-bedrooms run from $3,140 to $4,270 per unit, and three-bedrooms run from about $4,000 to $4,380 per unit. The complex also includes numerous amenities such as a 24-hour fitness center, bocce ball court, clubhouse with fireplace and kitchen, an outdoor grilling area, pool and hot tub.
While many developers and property owners throughout the Bay Area strive to invest in multifamily product near downtown and central business districts, North San Jose continues to emerge as a major employment hub of its own. Rents in Silicon Valley continue to increase, according to Kidder Mathew’s First Quarter Bay Area Multifamily report, with rates currently standing at an average of $2,869 per month, an increase of 3.8 percent year-over-year. With several major firms such as Uber and Lyft going public, Kidder Mathews predicts that the demand for housing, in Silicon Valley and across the Bay Area, will only rise as the region continues to benefit from its strong, tech-driven economy.