San Jose Condos Going Rental

The Mercury News reported today on decisions by Barry Swenson and the CIM Group to convert for sale condos into rental units. Amongst the projects being converted include The Globe by CIM, and Barry Swenson’s Skyline and The Lofts on Alameda project.

This is no real surprise. What will be interesting to see is whether the other significant downtown developments will also be converted. I don’t have the official numbers, but from what we’ve heard, sales have been soft at the Axis by KT Properties, Mesa’s 360 Residences (I would link to it but the developer’s site gets blocked as a dangerous site - you’d think they would fix this), as well as CIM’s Tower 88 project. I suspect we’ll hear more about all these projects at the Hoge, Fenton, Jones, and Appel sponsored Downtown San Jose Tour next week.

I believe CIM has the lowest land basis at Tower 88 (subsidized RDA site), and therefore will likely be the most likely to ride out the storm. There were rumors a month or two ago that one of these projects was going back to the lender. Whether that is true or not i’m not sure, but if I had to venture a guess, I would say it would be the 360 Residences based on the fact that my browser prohibits me from even accessing their website and they don’t seem to even have the cerebral instinct to fix it.

Similar Posts:

• The 88 Condos in San Jose Revises Pricing
• KT Properties Picks Up 1 S Market in Downtown San Jose
• Silverstone Properties Fails in its Bid to Rezone Property
• Possibly Brilliant Timing for Buyer of Oracle/Sobrato Tower; PWC Possibly on the Hunt
• 120-Acre San Jose Flea Market Site Put Up For Sale

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