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San Francisco

Windy Hill and Rockwood Capital buy apartments in San Jose for $84M

New owner could convert some office and shop space into 13 more apartments

Windy Hill Property Ventures' Jamie B. D’Alessandro and Tod Spieker; Rockwood Capital's David Becker and Tyson Skillings. 130 Stockton Street, San Jose (Getty, Cushman & Wakefield, Windy Hill Property Ventures, Rockwood Capital)
Windy Hill Property Ventures' Jamie B. D’Alessandro and Tod Spieker; Rockwood Capital's David Becker and Tyson Skillings. 130 Stockton Street, San Jose (Getty, Cushman & Wakefield, Windy Hill Property Ventures, Rockwood Capital)

Windy Hill Property Ventures and Rockwood Capital have bought a 162-unit luxury apartment building in San Jose for $83.5 million.

The Palo Alto-based and San Francisco-based real estate investors acquired Vespaio, a seven-story, mixed-use property at 130 Stockton Street, the San Francisco Business Times reported. The seller was Hudson Companies, based in Campbell.

The cost came out to $515,000 per unit — 16 percent below the $610,000 average per-unit sale price for San Jose apartment buildings last February, according to CoStar.

The white apartment complex with brown corners, built in 2020, includes a three-story podium with 32,000 square feet of offices, shops and restaurants. 

Located just north of The Alameda, Vespaio lies across the Caltrain tracks from SAP Center, Diridon Station and Google’s stalled Downtown West transit village.

The 162 apartments are 80 percent leased. It’s not clear how many offices and shops have been rented out.

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In 2021, the project’s one commercial tenant, Surfaceink, took up 6,900 square feet, according to the Business Times and San Jose Mercury News. Vespaio appears to have added three new ground-floor tenants since, including Mayweather Boxing + Fitness, The Preserve and Cyclebar, for a combined 5,100 square feet.

Early this year, Windy Hill, which owns and operates $550 million worth of Bay Area multifamily and commercial properties, filed preliminary plans to convert some of Vespaio’s offices and shops into 13 residential units, including nine live/work apartments and four studios, the Mercury News reported. 

The office vacancy rate in Downtown San Jose was 16.9 percent during the first quarter, according to Cresa. At the same time, the vacancy rate for Silicon Valley was 14.1 percent.

Brokers Jason Parr, Scott MacDonald, Seth Siegel, John Hansen, Sydney Ladrech, Brayden Joel, Terry Daly and Dan McLeod of Cushman & Wakefield arranged the sale and financing for the deal.

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— Dana Bartholomew

Companies and People
Rockwood CapitalWindy Hill Property Ventures