Apartments at Santana Row in San Jose are bought for $140 million-plus

"SAN JOSE - A big apartment complex at Santana Row has been bought for more than $140 million in a deal that marks the second sale of an apartment hub in the San Jose mixed-use neighborhood in less than a year. Misora, a 212-unit apartment property located on Hatton Street between Olin Avenue and Olsen Drive in San Jose, has been bought for $148.5 million, according to documents filed on Feb. 5 with the Santa Clara County Recorder's Office."

"Chicago-based Waterton, a real estate investment firm, bought the Misora property from Federal Realty Investment Trust, the principal developer and owner of Santana Row, a destination mixed-use retail, dining, housing, entertainment, residential, and hotel neighborhood in west San Jose. In May 2025, Federal Realty sold Levare, a 108-unit apartment hub at 3003 Olin Ave. in Santana Row. Hines, a major real estate firm, paid $73.9 million for Levare, which worked out to $684,300 a unit, one of the higher per-unit prices for apartment complexes in the South Bay since the coronavirus outbreak. The just-completed deal for Misora works out to $700,500 a unit, a price that suggests Santana Row apartment properties are producing robust values despite financial setbacks for some South Bay residential hubs."

"On Jan. 28, the Fay, a 336-unit apartment tower in downtown San Jose, was foreclosed due to a loan delinquency. As a result of the foreclosure, the lender placed a value on the property of $110 million, or $327,400 per apartment. Even as Federal Realty sells some of its apartment properties at Santana Row, the real estate firm is developing new residences in the west San Jose neighborhood. In 2025, Federal Realty launched construction of a 258-unit apartment complex at 358 Hatton St. This project represents Federal Realty's first new residential development in 10 years. The new owner of the Misora apartments is eyeing a wide-ranging upgrade of the just-bought property."

Waterton purchased Misora, a 212-unit apartment on Hatton Street in Santana Row, for $148.5 million. The purchase followed Federal Realty's May 2025 sale of Levare, a 108-unit Santana Row apartment, to Hines for $73.9 million. Misora's price equals about $700,500 per unit, higher than Levare's roughly $684,300 per unit, signaling strong apartment values at Santana Row despite some local financial setbacks. A Jan. 28 foreclosure of the 336-unit Fay tower placed that property at $110 million, or $327,400 per unit. Federal Realty is building a new 258-unit complex at 358 Hatton St., and Waterton plans to modernize Misora residences.

Read at The Mercury News