Santana Row’s Misora Apartments Headed to Market

Federal Realty Investment Trust is looking to sell another apartment complex in its Santana Row residential and commercial district.

The Rockville, Maryland-based firm is preparing to list the 212-unit Misora luxury apartment complex in San Jose for sale, the Silicon Valley Business Journal reported. In May, Hines bought another apartment complex in Santana Row, the 108-unit Levare, for $73.9 million.

Federal Realty CEO Don Wood shared on the company’s Aug. 6 earnings call that the firm plans to sell the Misora apartments across the street from the Levare.

He noted that assets such as the Misora and Levare are essential in broader shopping centers and mixed-use communities such as Santana Row without integrating them into the core retail amenity base.

“These are all high-quality assets that we’ve built over the last 25 years that are ripe for monetization without disrupting the productivity or the valuation of the core mixed-use environments we’ve created,” Wood said, per the Business Journal.

Misora was built in 2014 and totals roughly 222,000 square feet, according to Yardi Matrix data cited by the Business Journal. The property boasts amenities like a lap pool, lounging pool, spa, fireplace lounge, rooftop deck and outdoor barbecue and dining facilities. If Misora sells for a similar price-per-unit as Levare, the overall price tag would be more than $145 million.

Housing continues to be a priority at Santana Row for Federal Realty. Last month, the owner and developer announced plans for a 258-unit apartment complex at 358 Hatton Street, currently a surface parking lot for shops, restaurants, offices and homes in Santana Row. It would be the first new housing development at Santana Row in a decade.

“We’ve been working on this residential project for a very long time,” Patrick McMahon, Federal Realty’s senior vice president of development, told The Mercury News, noting that groundbreaking on the project is imminent. Construction is expected to take about 26 months with units ready for move-in in 2027.

— Chris Malone Méndez