A Los Angeles-area development duo secured a construction loan that could jumpstart a long-planned apartment project in Santa Clara.
An affiliate of Ensemble Real Estate Investments and Rethink Development landed a $150 million loan from Bank of America to build a 301-unit residential complex at 2263 and 2303 Calle Del Mundo, the East Bay Times reported, citing documents filed with the Santa Clara County Recorder’s Office.
The project would rise eight stories and replace two light industrial buildings currently occupying the roughly 2-acre site. Santa Clara officials have granted final approval for the development, clearing the way for the development partners to move forward.
The loan marks the latest step in a yearslong effort by the developers to assemble and prepare the property for housing. An affiliate of the group bought one parcel in 2019 for $7 million and acquired the neighboring lot in 2021 for $8 million, creating the footprint for the planned complex.
In addition to apartments, the project would include commercial and co-working space as well as resident-serving amenities. Proposed amenities include a gym and fitness area, lounge and activity space and a dog spa, according to project plans.
A timeline for construction and completion has not yet been announced.
The development is the latest in a wave of multifamily projects moving ahead in Silicon Valley despite a tougher capital environment compared to before the pandemic. Interest rates and construction costs have risen over the past two years, leading developers to delay or shelve proposals across the region. San Francisco alone has more than 20,000 apartments that have been approved for construction but that developers have not broken ground on.
Santa Clara is still attracting multifamily investor interest, however. In January, San Mateo-based Acacia Capital Corporation, acting through an affiliate, purchased the 287-unit Sofia apartments at 3580 Rambla Place for $183 million. SummerHill Apartment Communities, which developed the property that opened in 2024, was the seller of the seven-story building. — Chris Malone Méndez
Read more
Residential
San Francisco
San Jose affordable housing project lands $82M in construction financing
Residential
San Francisco
Acacia Capital adds more Bay Area apartments with $183M purchase
Development
San Francisco
Bay Area construction jobs lag despite reforms push