Ivanhoé Cambridge adds to its roster of rental housing units in Silicon Valley with the acquisition of three new residential buildings near San Jose, California. The Quebec-based real estate company now owns over 1,400 apartments in one of the most dynamic regions of the United States.
This new transaction by Ivanhoé Cambridge, a real estate subsidiary of the Caisse de dépôt et placement du Québec, involves the purchase of 484 rental housing units across three buildings located in Cupertino, Sunnyvale and San Jose, home to some of the world’s largest information technology companies, notably Apple, Facebook, Google, IBM and Intel.
“The residential market in Silicon Valley meets several of our investment criteria and forms an essential part of our strategic business plan,” explained Daniel Fournier, Chairman of the Board and Chief Executive Officer of Ivanhoé Cambridge. “As in the case of the Rockhill Complex in Montreal and several buildings we acquired in central London, Silicon Valley has quality buildings with a significant critical mass in a growing market.”
Last December Ivanhoé Cambridge announced the purchase of The Park Kiely, a 948-unit rental apartment complex located in San Jose. The three new properties, Verandas, Woodbridge and The Reserve, have been acquired for CAD $136 million and complement our current presence in the region. All buildings are within a 5-kilometre radius. Demmon Partners currently manages The Park Kiely and will assume management of the three new properties.
“These buildings are situated in an exceptional Location and enable us to leverage synergies in terms of building management,” added Sylvain Fortier, President, Residential, Ivanhoé Cambridge. “We are reinforcing our position in a region which will see remarkable growth over the next few years.”
Silicon Valley is known as one of the wealthiest areas of the U.S. In 2011, average family income figures were above the national average and the region saw the highest job creation numbers in the country. Market studies indicate that the area’s population growth should increase to 5% by 2016.
In addition to high-tech companies, the Valley features a number of prestigious universities and some of the top elementary schools in California. Furthermore, Apple’s new Silicon Valley campus is slated for completion by 2015 and will be built less than a kilometre from the Verandas and Woodbridge.