Why Simeon Residential Is Betting Big on San Jose

Simeon Residential Properties and partner Kinship Capital just scooped up a development site across from the downtown Greyhound station that's teed up to be a 21-story apartment building. We chatted with Simeon CIO Mike Kim for more deets.

Mike tells us he's bullish on San Jose and the greater Silicon Valley area; those with good jobs want an urban lifestyle, and he thinks San Jose can fulfill that appetite. The parcel at Post and San Pedro streets is approved for 182 units and 7k SF of retail. Kinship is a close equity partner of Simeon's, and they've bought some buildings in Sunnyvale together before. The team is proceeding with construction drawings and plans to break ground in early 2016 to finish in late 2017.

It's Simeon's second big bet on a high-rise in downtown San Jose, as its 21-story Centerra tower wraps up a few blocks away at North Almaden Avenue. Simeon is looking into value-add commercial or multifamily developments, and Silicon Valley is a hot spot due to all the job creators and wage increases. A whopping 48 new restaurants have opened in San Jose in the past 18 months, and sports (Earthquakes, 49ers, Sharks) are drumming up more interest as well.

In S.F., Simeon is finishing up a high-end custom condo complex at Second and Townsend, which sold to KB Home (above). Those types of opportunities are hard to come by at this point in the cycle because there's so much capital and sites are "priced to perfection, plus," Mike says. "Execution has to be flawless and that is virtually impossible to do in S.F." Occupancy is slated for later this year.

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