SAN FRANCISCO, CA - PCCP, LLC announced today that it has provided a $44 million mezzanine loan for the development of a seven-story, 371-unit, Class A multifamily apartment project with 45,000 square feet of ground floor retail called The District. Located at 1315 McCandless Drive in Milpitas, Calif., the project is a fully entitled, 5.2-acre site that will be developed by Lyon Communities. This loan has enabled Lyon to begin construction with anticipated completion in late 2017.
The north San Jose/Milpitas submarket is consistently among the most stable residential markets in the country. According to MPF Research, the submarket reported 95 percent or greater occupancy since 2009, with second quarter 2015 occupancy at nearly 97 percent.
“With strong apartment market fundamentals and continued job growth in the area, PCCP’s loan will enable Lyon Communities to take advantage of a prime opportunity to help meet a high residential demand in a thriving market and deliver a quality project near a number of amenities including the newly built-out mass transit infrastructure,” said Ron Bonneau, senior vice president with PCCP.
The District is within the Milpitas Transit Area Specific Plan (TASP) which is designed to redevelop underutilized warehouse and flex office buildings into transit-oriented, mixed-use developments. The impetus for TASP is the extension of Bay Area Rapid Transit (BART) into San Jose and the development of the new Milpitas BART station just a few blocks away from the property that will also be completed in 2017.
The District is located at the corner of Great Mall Parkway and McCandless Drive and is in proximity to Silicon Valley’s largest employers including Samsung, eBay, Sandisk, Cisco, Intel, and KLA Tencor. It is also less than one mile from Interstate 880, 680, and 237 freeway ramps, providing direct access to San Francisco, San Jose, and Silicon Valley and is across the street from Simon Property Group’s 1.1 million-square-foot Great Mall.
Lyon Communities has acquired, managed, and/or renovated more than 23,000 residential units and has developed over 11,000 units since 1989. The company currently manages 37 properties totaling approximately 8,000 units located in California, Georgia, Colorado, and Florida, and has over $2 billion in assets under management in various stages of development. Lyon has had recent success in Milpitas, developing a 366-unit multifamily project in 2013 called the Apex just several blocks from The District.
About PCCP, LLC: PCCP, LLC is a premier real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has approximately $5.5 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco and Los Angeles, PCCP has a proven track record for providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP originates and services each of its investments, ensuring that clients benefit from added value and outstanding investment returns. Since its inception in 1998, PCCP has successfully raised, invested and managed approximately $10.5 billion of institutional capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with proven operators seeking fast and reliable capital. Learn more about PCCP at www.pccpllc.com