Hines Global Income Trust has bought a 249-unit luxury apartment complex completed five months ago in San Jose for $117.5 million.
The real estate investment trust sponsored by Houston-based Hines bought the seven-story building at 715 West Julian Street, the Silicon Valley Business Journal reported. The seller was the Hanover Company, based in Houston.
The deal for Hanover Diridon, which opened its doors in August, works out to $471,888 per unit.
The triangular complex, renamed Diridon West, includes 26,000 square feet of ground-floor shops and restaurants a short walk away from the Alameda, SAP Center and Diridon Station.
Its 249 studios, one- and two-bedroom apartments are 95 percent leased.
The striking gray and Cape Cod blue complex, designed by TCA Architects, has a knifelike edge at its tip, with floor-to-ceiling windows and rows of balconies. A 2,000-square-foot plaza at the corner has illuminated, built-in benches.
Its apartments have nine-foot ceilings, gourmet kitchens and walk-in closets, with access to a “sky-deck” and a clubhouse with a theater, gym, dog spa and a pool with poolside cabanas. It began leasing in 2021.
The Hines trust said its strategic location, trophy profile, live-work-play amenities and proximity to premier Silicon Valley employers make it an attractive investment.
“While development costs remain elevated in the Bay Area resulting in a slowdown of new multifamily product, fundamentals continue to improve, therefore ideally positioning this asset to capitalize on the strength of the market,” Alfonso Munk, president of Hines Global Income Trust and Hines’ chief investment officer for the Americas, said in a statement.
Hines Global Income Trust, founded by Hines in 2014, has a $4.1 billion portfolio of commercial real estate. In the Bay Area, it owns or manages 9.7 million square feet of property, including more than 1,000 apartments.
— Dana Bartholomew