Trumark Breaks Ground on Its Latest San Jose Community of 94 Townhomes, Marking Its Third Silicon Valley Acquisition in Just 150 Days
SAN JOSE, Calif. – Sept. 14, 2012 – Trumark and Resmark Land and Housing, a division of The Resmark Companies, announced today that they have acquired 4.4 acres in San Jose for a major residential development of 94 townhomes to be called Centered on Capitol.
For Trumark Homes, this represents the third Silicon Valley project the fast-expanding company has acquired in the past 150 days, two of which involve Resmark as a partner.
The acquisition further boosts Trumark’s profile in Silicon Valley, where the company revived the 45-unit Capitol Station project (formerly known as Grandview Terrace) in San Jose this spring and purchased the 134-unit Contour development in nearby Milpitas in July. Resmark Land and Housing is the equity partner for Trumark on both the Centered on Capitol and Contour projects.
The three projects – all located within a five-mile radius of each other – represent 262 units with a projected sales revenue that will total more than $150 million.
“We targeted the Silicon Valley residential market very early on as one of the nation’s first areas to experience job growth and economic recovery,” said Principal and CEO Michael Maples. “For the past 36 months we have focused a significant amount of our acquisition efforts in this market, so that today we are well positioned with a strong inventory. We are still very bullish here on the buy side.”
“As real estate investors, we look for long-term relationships and do repeat deals with high-quality builders and developers that share our vision, like Trumark,” said Robert N. Goodman, Chairman and CEO of The Resmark Companies. “Trumark has strong market penetration and long-standing relationships that allow them to bring us great opportunities in the core markets of Silicon Valley, Los Angeles and Orange County.”
Trumark broke ground last week on its newest project, the townhome community of Centered on Capitol at 1328 N. Capitol Ave., demolishing an abandoned building on the former farmland. Community amenities will include nicely designed public spaces via a park, central courtyard fountain, outdoor built-in kitchen, shade sails and bistro seating, and a large children’s tot lot. The townhomes, ranging in size from 1,414 to 1,986 square feet, are slated to open for sales the first quarter of 2013.
The seller was a family of fourth generation farmers who had owned the land since the late 1800s, although the property was no longer being used for agricultural purposes.
“We’ve been tracking this land since 2008 and we weren’t the only ones,” Maples said. “But the owners knew of our reputation as problem solvers, came to trust our team and recognized that our expertise in planning and entitlement would actually add value to their property.”
Trumark projects a November close-out on Capitol Station, the townhome community the developer took over from US Bank earlier this year. Eleven of the 45 Mediterranean-style homes had been completed and sold in the summer of 2008 by its previous developer. Trumark is currently completing construction on the remaining 34 unfinished units and had sold more than 80 percent of them by mid-August.
Construction of the Contour development in Milpitas is scheduled for the first quarter of 2013 with new homes going on the market as early as next summer. The nine-acre project will provide a combination of medium-density single-family detached homes and higher-density multifamily townhomes within a 10-minute walk of the VTA Light Rail Station and the future Milpitas BART Station. The community will be connected to the Citywide Trail System through an extensive internal pedestrian network linking front doors to exceptional gathering spaces and common area amenities.
These three projects will supply a steady flow of new housing in a very tight market over the next 18 months.
Since May 2009, Trumark Homes has raised more than $140 million in equity and funded 16 deals in Northern and Southern California. More than 80 percent of the 2,000+ lots that Trumark controls are in its pipeline in the San Francisco Bay Area.
“Because we also deal in commercial real estate in the Bay Area, we saw the early signs of job growth before most builders,” said Gregg Nelson, principal of Trumark Commercial. “In early 2010 companies began looking for office space well in advance of hiring people. That’s how we knew that jobs were coming soon to Silicon Valley and that demand for new housing would be next.”
About The Trumark Group of Companies
The Trumark Group of Companies is a diversified real estate developer and builder with expertise in land acquisition, homebuilding, community design, entitlements and office, R&D and retail development.
Trumark Companies is the residential development arm of the organization and has completed over $700 million in transactions since 2000, representing approximately 2,750 lots in Northern and Southern California.
Trumark Commercial, which builds, leases and sells commercial buildings, has entitled or developed approximately two million square feet of office, R&D, retail and hotel properties in the northern portion of the Golden State.
Trumark Homes is a new generation homebuilder that is nimble, focused and unburdened by broken projects of the past. Since May of 2009, Trumark has raised more than $140 million of equity and funded 16 deals. Its pipeline exceeds 2,000 lots in core urban areas of California, representing more than $950 million in future revenue.
Additional information is available at www.trumark-co.com
About The Resmark Companies
Since 1995, Resmark has offered equity investment capital and asset management powered by core foundational discipline and focus. A fully integrated real estate investment group, The Resmark Companies’ divisions—Resmark Land and Housing, Resmark Apartment Living and Resmark Shopping Centers—finance, acquire, develop and manage real estate in California and the Western United States and other select major metropolitan markets nationwide. Resmark currently manages approximately $1 billion of capital and has participated in more than 130 deals, encompassing more than 21,900 single-family and multifamily residential units and representing over $6 billion in cumulative and anticipated revenues. Headquartered in Los Angeles, Resmark also maintains corporate offices in San Diego and La Jolla. More information can be found at www.resmark.co.