Ivanhoé Cambridge, the real estate arm of Caisse de dépôt et placement du Québec, has invested in two multifamily assets in California’s Silicon Valley for a total of $234 million. The Montreal-based firm has teamed up with California-based developer Shea Properties to build a high-end complex and recently acquired Kimberly Woods, another multifamily property in the region.
The new development project, ICS Transit Village, represents an investment of $171 million. When completed, it will comprise 648 rental units in two five-storey buildings. Groundbreaking is scheduled for spring 2013, with construction expected to be completed by the end of 2015.
Daniel Fournier, chief executive officer of Ivanhoé Cambridge, said in a statement: “Conditions in this market, which boasts the most favourable employment prospects anywhere in the US, are a strong incentive for us to build critical mass in rental stock. In addition, our venture with Shea Properties exemplifies the type of partnership we seek to develop as we pursue growth in the US.”
Sylvain Fortier, president for residential at Ivanhoé Cambridge, added: “Scarcity of land and restrictions on home construction make the rental market highly attractive for people wishing to settle in Silicon Valley.” ICS Transit marks the firm’s first construction venture in the region.
In addition, Ivanhoé Cambridge purchased the Kimberly Woods multifamily complex in San Jose for $63 million. The acquisition of Kimberly Woods includes a $2.5 million capital programme.
All told, these two investments bring Ivanhoé Cambridge’s total rental housing inventory owned in the Silicon Valley area to nearly 2,300 units. The firm currently owns four other multifamily complexes in the region: The Park Kiely, Woodbridge, The Verandas and The Reserve.