Ivanho Cambridge establishes presence in the heart of California’s Silicon Valley
PR Newswire
MONTREAL, Dec. 7, 2011
MONTREAL, Dec. 7, 2011 /PRNewswire/ – Ivanho Cambridge announces its
acquisition today of The Park Kiely, a major complex comprising 948
rental units in San Jose, California, in the heart of Silicon Valley
– a region that is home to preeminent information technology companies.
Located near the prestigious Stanford University campus, The Park
Kiely’s “neighbours” include Apple, Facebook, Google and IBM.
The transaction is valued at US$235M, for the complex of 31 two- and
three-storey buildings located on almost 1.4 million square feet of
land. The property includes a small number of studios as well as one-
and two-bedroom apartments and offers residents a range of services,
including four swimming pools, sports grounds and a play area for
children.
“This new transaction represents the second phase of our acquisition
strategy. It demonstrates once again, our intention to acquire
high-calibre buildings with critical mass, in excellent locations, that
are attractive from a financial perspective over the short- and
long-term,” stated Sylvain Fortier, President Residential, Ivanho
Cambridge.
In-depth study of the region’s economy concludes that significant job
creation and the sustainable strength of the economy in the San Jose
region create conditions that are conducive to development. As an
additional benefit, this property falls within the area served by the
Cupertino Union school district, one of the highest-rated in
California.
“Ivanho Cambridge has once again succeeded in seizing an excellent
business opportunity,” asserted Daniel Fournier, Chairman of the Board
and Chief Executive Officer of Ivanho Cambridge. “Our acquisition last
July of the Rockhill complex in Montreal confirmed our intent to
establish a presence here at home, and today’s news clearly
demonstrates our expertise in finding quality assets in Qu bec and all
over the world,” he added.
About Ivanho Cambridge
Ivanho Cambridge is one of the 10 largest real estate companies in the
world, with assets in 24 countries valued at over C$30B as at December
31, 2010. Ivanho Cambridge is the real estate arm of the Caisse de
d pôt et placement du Qu bec. Ivanho Cambridge Residential invests in
multi-residential rental buildings in large urban centres in Canada,
the United States and Europe
The Park Kiely Highlights
| 1. |
This 948-unit multi-residential complex is located in the heart of Silicon Valley (Cupertino, San Jose West), a region boasting one of the strongest records for job creation in the United States. |
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| 2. |
One benefit of this complex is its excellent location, with Highway 280 running along its southern edge, and its proximity to major universities (Stanford University) and information technology companies such as Apple, Facebook, Google and IBM. |
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| 3. |
Additional factors – aside from topographic restrictions on real estate development in this region – include the extreme scarcity of vacant lots, high construction costs and regulations on development density rights that rank among the most restrictive in the United States. |
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| 4. |
This business opportunity meets the requirements of Ivanho Cambridge May 2011 strategic plan: to acquire high-calibre buildings with critical mass in excellent locations, in markets with imposing barriers to entry and conditions that promote long-term growth in the building’s value. |
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| 5. |
Our in-depth study of the regional economy led us to conclude that two factors – major job creation and the strength of the economy in the San Jose region (located south of San Francisco) – are a good fit for our business plan. |
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| 6. |
Plans for Apple’s new 176-acre campus, which is expected to raise the number of employees in this area from 9,500 to 13,000, will undoubtedly impact demand and, consequently, the vacancy rate. An additional benefit is the property’s location within the Cupertino Union School District – one of the highest-rated in California. |
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| 7. | The total cost of this acquisition is US$235M. | |||
| 8. | Asset summary | |||
| Type of building | Residential, built between 1968 and 1972 | |||
| Address | 355 Kiely Blvd. – San Jose, California | |||
| Number of buildings/units | 31/948 | |||
| Land surface (sq. ft.) | 1,398.963 | |||
| Residential area (sq. ft.) | 815,010 | |||
| Number of parking spaces | 1,442 in total | |||
| Occupancy rate | 95% | |||
Number of apartments: 948
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10 two-storey and 21 three-storey buildings, all equipped with elevators Average unit area: 860 sq. ft. Services offered: Swimming pools (4), clubhouse, soccer fields/tennis courts/volleyball courts, children’s playground, dog park. |
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SOURCE Ivanho Cambridge Residential
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