Amcal and Swenson Snag Refi for Student Housing in San Jose

Amcal Housing and Swenson have secured $150 million in financing for their 19-story student housing complex in Downtown San Jose.

The Agoura Hills- and locally based developers landed the loan tied to The Grad San Jose, a 260-unit highrise at 88 East San Carlos Street, SiliconValley.com reported.

The financing from Acore Capital Mortgage, based in San Francisco, replaces a previous loan. In late 2021, The Grad received $150 million in financing from a fund controlled by Los Angeles-based CIM Group.

The refinancing points to rising confidence in San Jose’s central business district.

“It’s always a good sign for Downtown San Jose when things can be worked out to provide new financing for a property,” Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy, told the outlet run by the San Jose Mercury News.

The L-shaped Grad, completed in 2020 on 1.5 acres, is a block from San Jose State University.

Apartments take up the top 17 floors, above student amenities and 14,750-square-feet of ground-floor shops and restaurants. Its 260 flats can squeeze in 1,039 beds.

The Grad San Jose includes a three-story parking garage and an amenities deck with an exercise center, pool, sports courts, picnic area and landscaping.

This summer, Amcal and Swenson put the apartment tower on the market for an undisclosed price. JLL held the listing.

The assessed value of the building in January was $186 million, according to the Santa Clara County Assessor’s Office.

“Investors are offered the ability to generate nearly $1.5 million of additional revenue by introducing 46 additional double-occupancy beds as well as through leasing the remaining ground-floor retail suites,” according to a JLL marketing brochure available in June.

Amcal and Swenson appear to have pulled their listing, according to the Mercury News. The JLL webpage that once hosted the marketing brochure is no longer visible.

Amcal Housing, founded in 1979 by Percival “Percy” Vaz, has developed 14,000 affordable, market-rate, student and workforce apartments in California, Texas and Washington, according to its website.

Swenson, whose roots date back to the Carl N. Swenson Company founded in 1912, has built some of the most significant landmarks in San Jose, including the Hotel de Anza and the San Jose City Hall and Civic Center.

— Dana Bartholomew