Ivanhoé Cambridge has reached a milestone in its growth in Silicon Valley, California, with new investments of C$234 million that have propelled its total rental housing inventory owned in that market to nearly 2,300 units. Jointly with Shea Properties, the Quebec-based company is poised to build a high-end complex in the Valley. Ivanhoé Cambridge has also recently acquired Kimberly Woods, anOther multiresidential complex.
“The Silicon Valley region continues to provide excellent investment opportunities in the residential market,” said Daniel Fournier, Chairman and Chief Executive Officer of Ivanhoé Cambridge. “Conditions in this market, which boasts the most favourable employment prospects anywhere in the United States, are a strong incentive for us to build critical mass in rental stock. In addition, our venture with Shea Properties exemplifies the type of partnership we seek to develop as we pursue our growth in the United States.”
The Kimberly Woods complex, purchased at a cost of C$63 million, which includes a C$2.5 million capital program, is a natural addition to the four Other complexes already owned by Ivanhoé Cambridge in Silicon Valley: The Park Kiely, Woodbridge, The Verandas and The Reserve.
The new development project (ICS Transit Village), meanwhile, representing an investment of C$171 million, will see 648 rental units built in a pair of five-storey buildings. The complex will deliver a luxury experience for residents, with the full range of amenities. Groundbreaking is scheduled for spring 2013, with construction expected to be completed by year-end 2015.
The project is ideally located, with several major employers nearby, including Hitachi, Kaiser Hospital and IBM Research. It will also provide easy access to the new Apple Campus, which will house some 13,000 employees by 2015 and is slated to open around the same time as the complex’s units are delivered.
“Scarcity of land and restrictions on home construction make the rental market highly attractive for people wishing to settle in Silicon Valley,” emphasized Sylvain Fortier, President, Residential, Ivanhoé Cambridge. “Moreover, we are very pleased to be partnering with Shea Properties, a large company that shares the same values and same long-term vision as Ivanhoé Cambridge.”