Related California today announced $690m in construction financing for residential development in Santa Clara. This investment signals the beginning of Related’s growth in Santa Clara and underscores the company’s commitment to deliver the most ambitious and complex development in the country.
Otera Capital, a major institutional commercial real estate debt player across North America and a leader in Canada, provided a $360m loan for the development of 509 luxury residences; PNC Bank, one of the largest diversified financial services institutions in the United States, provided $130m in financing for the development of 191 luxury senior residences; and Welltower Inc. (NYSE: WELL), an S&P 500 company driving the transformation of health care infrastructure and strategic partner in Coterie, a new category of luxury senior living, provided capital for the luxury senior residences.
The Tasman East residences are adjacent to Related Santa Clara, a unique partnership between the City of Santa Clara and Related to create a 240-acre, LEED-designed, multi-phased, mixed-use destination adjacent to Levi’s Stadium. Related is spearheading the development of 1,600 units in Tasman East, which will offer world-renowned architecture, inspired design and an unparalleled suite of amenities and services.
The development will include a new location for Coterie, a joint venture between Related and Atria, the leading senior living operator, in conjunction with Welltower Inc., to develop, own and operate more than $3 billion of modern, urban communities catering to seniors looking to live in major cities. Coterie Cathedral Hill, which opened in March 2022, was the first building to open under this joint venture. Coterie Hudson Yards will open in this fall, followed by Santa Clara and Cupertino, California.
“These transactions represent Related’s larger commitment to delivering much-needed housing in the heart of Silicon Valley,” said Nick Vanderboom, partner of Related Santa Clara. “The Tasman East residences will be conveniently located within walking distance to the shops, restaurants and offices of Related Santa Clara, which, once complete, will be the most dynamic, fully integrated mixed-use destination in Silicon Valley.”
“Otera Capital has a strategic commitment to partner with top-tier sponsors in building the cities of tomorrow,” said Paul Chin, executive vice president and chief investment officer, Otera Capital. “We are thrilled to support Related in developing this well-designed and highly-amenitized multi-family project.”
“We are pleased to collaborate once again with Related, Atria and Welltower on this important development for the Santa Clara community,” said Sam Kupchella, vice president and relationship manager for PNC Agency Finance. “With the aging population growing across the U.S., the development of high-quality senior housing is a critical need across the country. We’re excited to be part of financing this work.”
Greenberg Traurig, LLP / Stroock & Stroock & Lavan LLP served as legal counsel for Related. Winstead served as legal counsel for Otera Capital; Riemer & Braunstein, LLP for PNC Bank; and Gibson Dunn for WELL.
About Related Companies:
Related Companies is a global real estate and lifestyle company defined by innovation and the most prominent privately-owned real estate firm in the United States. Formed 50 years ago, Related is one of the largest private owners and preservationists of affordable housing in the U.S. and a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisition, management, finance, marketing, and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, Santa Clara, West Palm Beach, Miami, Washington, D.C., Abu Dhabi and London, and boasts a team of approximately 4,000 professionals. With over $60 billion in assets owned or under development including the 28-acre Hudson Yards neighborhood on Manhattan’s West Side, The Square in Downtown West Palm Beach, The Grand LA and Related Santa Clara in California, and The 78 in Chicago. Related was named to Fast Company Magazine’s list of the 50 Most Innovative Companies in the World. For more information about Related, please visit www.related.com.
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