SAN JOSE \u2014 A group with a global reach has paid $200 million-plus to scoop up a San Jose student housing tower in a deal that hints at signs of economic strength in the city\u2019s urban core.<\/p>\n
The Grad, a 19-story, L-shaped residential high-rise in downtown San Jose<\/a>, has been bought for $204.8 million, documents filed on Oct. 6 with the Santa Clara County Recorder\u2019s Office show.<\/p>\n Global investment titan Brookfield and student housing-oriented Coastal Ridge Real Estate teamed up through an affiliate to acquire The Grad, which is at 88 East San Carlos St. about a block from San Jose State University.<\/p>\n \u201cThe Grad\u2019s sale shows the underlying strength of downtown San Jose,\u201d said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.<\/p>\n In June 2024, Amcal and Swenson attempted to sell The Grad<\/a>, putting it on the sales block in an uncertain market.<\/p>\n It wasn\u2019t immediately clear if the tower was being marketed continuously for sale since that mid-2024 time period.<\/p>\n In November 2024, Acore Capital Mortgage provided Amcal and Swenson with a $150 million loan to refinance<\/a> The Grad. That funding\u00a0that replaced a prior loan from CIM Group that had been issued in 2021.<\/p>\n The 260-unit residential hub can accommodate 1,039 beds. Floor plans include 1-, 2-, 3-, and 4-bedroom configurations.<\/p>\n An alliance of Amcal, based in the Los Angeles County city of Agoura Hills; and San Jose-based real estate firm Swenson developed The Grad starting in 2017. The housing tower opened in 2020.<\/p>\n The deal suggests apartment values might be stabilizing in the South Bay. The new owners paid 5.8% more than the tower\u2019s assessed value of $193.5 million, as calculated for January 2026.<\/p>\n The price that New York City-based Brookfield Real Estate Solutions and Ohio-based Coastal Ridge paid works out to roughly $787,500 per room.<\/p>\n That\u2019s 104.5% higher \u2014 more than double \u2014 the average price of $385,000 for completed apartment complex sales in the South Bay as estimated by Marcus & Millichap, a commercial real estate firm.<\/p>\n It appears that Amcal and Swenson were able to repay their lender and potentially achieved a profit for their years-long efforts related to The Grad.<\/p>\n \u201cThe sale price means both the lender and the owner came out whole, which is significant in today\u2019s economic environment,\u201d Staedler said.<\/p>\n Student housing has become something of a hot ticket in downtown San Jose of late.<\/p>\n