Santa Clara housing project site is grabbed by NYC real estate buyer
SANTA CLARA — An empty lot in Santa Clara where more than 1,000 homes were proposed — but never built — has been bought by an East Coast real estate investment firm.
Cerberus Capital Management, acting through an affiliate, has paid $50 million for the property, according to documents filed on Oct. 25 with the Santa Clara County Recorder’s Office.
The just-bought land totals 13.3 acres, which points to a price of slightly under $3.8 million an acre.
Greystar, a big developer of apartment and residential sites, sold the undeveloped land to Cerberus.
It appears that Greystar harvested a tidy profit on the property deal, a review of county real estate records shows.
In 2017, Greystar paid $35 million for the site. That suggests a 42.9% increase in the property’s value over the roughly six years that the residential developer owned the site.
During that time, Greystar proposed the development of up to 1,100 residential units along with 2,000 square feet of retail space, documents on file with the Santa Clara Planning Department show.
Santa Clara city officials have approved the project, which is located at 3905 Freedom Circle, the city’s website shows.
However, the property remains undeveloped, a direct observation in recent days of the site by this news organization shows. No indications were visible that any work has been done on what at present is a fenced-off and weed-choked site.
New York City-based Cerberus Capital Management, a private equity firm, invests in an array of industries and companies. It also provides financing for an array of real estate properties. Much less frequently, Cerberus has bought properties directly.
The Santa Clara development slated for the fallow property on Freedom Circle property was expected to be built in three phases, the county records show. A two-acre public park also was part of the project.