Madison Realty Capital Lends $183M on San Jose Resi Tower Near Google

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Scape North America has secured a $182.5 million debt package to build a planned multifamily development in San Jose, Calif., near corporate campuses for Google, eBay and other tech giants, Commercial Observer has learned.

Madison Realty Capital provided the construction loan for Scape’s SoFA project in downtown San Jose that will feature a 336-unit residential tower. Scape purchased the property from Bay Area developer KT Urban for $18.9 million in February 2020 through an affiliate.

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“Scape is an experienced owner, developer and operator of student and multifamily housing and we are pleased to continue our strong relationship with them to deliver creative financing for top-tier, accessible housing options serving professionals and academics in San Jose,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a statement.

Located at 600-618 South First Street, SoFA will be comprised of a mix of studios and one- and two-bedrooms along with roughly 6,000 square feet of ground-floor retail. The 23-story tower’s amenities will include a café, a tenant lounge, a fitness center, a roof deck, a pool, a yoga studio and 111 parking spaces.

The property is situated near corporate campuses of Oracle, Zoom, eBay, SAP, Adobe, and the new Google one in Downtown San Jose. It is also within close proximity of faculty, staff, graduates and undergraduates of San José State University.

“In recent years, downtown San Jose has seen a resurgence of local retail and restaurants moving in, driven by innovative tech companies, including Google’s new transformative campus bringing over 25,000 jobs to the neighborhood,” Zegen said. “However, supply of high-quality furnished living options is presently limited in a market already seeing robust office development from growth-oriented businesses.”

Representatives for Scape did not immediately return a request for comment. The London-based developer houses its U.S. headquarters in Boston.

Andrew Coen can be reached at acoen@commercialobserver.com.