Bay Area millennial homeownership dreams shrinking

Staring down home prices that in the Bay Area and elsewhere have soared into the millions, more millennials are expecting to rent forever.

That’s especially true in and around San Jose, San Francisco and Oakland.

More than 18 percent of millennials — currently between the ages of 23 and 38 — in the San Jose metro area are planning to always rent, according to a new report from Apartment List. In the San Francisco area, which covers Alameda, Contra Costa, San Francisco, San Mateo, and Marin counties, 17.1 percent expect to rent for their entire lives.

While fewer millennial renters in the country as a whole — 12.3 percent — are expecting to make rent payments forever, the percentage who are abandoning the long-held ideal of homeownership is growing. A year ago, just 10.7 percent said they would always rent.

Affordability — or the lack thereof — stands out as the biggest factor behind the numbers. Almost half of millennial renters have no down payment saved, with just 13 percent having more than $10,000 put away. In the Bay Area, a young person would need to have more than $200,000 to put a traditional 20 percent down on many properties.

Delma Hernandez would love to buy a home in San Jose someday.

“That’s always been my dream,” the 26-year-old said.

But now, Hernandez said, “that dream doesn’t seem realistic.”

Hernandez, who belongs to the San Jose Renters’ Rights Coalition, is especially worried that with companies like Google deciding to build large office complexes in the city, home prices will go up even more.

Millennials also point to bad credit and student loan debt as key obstacles to homeownership. In addition, the level of financial support some young people expect from their families is declining. And as a stark reminder of the …read more

Source:: The Mercury News – Business

      

Huge San Jose apartment complex is bought by Chicago investors

SAN JOSE — A huge apartment complex in San Jose has been bought by investors affiliated with a financial services giant, in a deal that points to a still-hot Silicon Valley residential and commercial property market.

Terra House, an apartment complex next to a Safeway-anchored shopping center near the corner of Snell Avenue and Branham Lane, has been bought by affiliates of the real estate arm of Teachers Insurance and Annuity Association of America and a Chicago-based TIAA unit called Nuveen.

The 340-unit Terra House apartment complex, which previously was known as Avana Skyway, was bought on Nov. 18, according to documents on file with Santa Clara County officials.

TREA Terra House, a Chicago-based affiliate of Teachers Insurance and Annuity, paid $145.2 million in cash for the apartments, the county property records show.

The recent price paid by TREA, which is shorthand for Teachers Real Estate Account, represents a solid increase in profit for the Terra House complex when compared with the increase in the Bay Area inflation rate.

The apartment center had last changed hands in 2015, trading for $124.3 million, this news organization’s survey of property records determined.

The Teachers Insurance purchase price on Nov. 18 for Terra House represents a 17 percent jump from the 2015 transaction value. During the same four year period, the overall inflation rate in the Bay Area rose 14 percent, figures from the U.S. Bureau of Labor Statistics show.

“This deal shows there is strong investor interest and demand for residential properties in Silicon Valley, and interest in developing these kinds of projects,” said Erik Hallgrimson, vice chairman with Cushman & Wakefield, a commercial real estate firm.

…read more

Source:: The Mercury News – Business

      

Amazon crafts leasing deal for huge Milpitas delivery hub

MILPITAS — Amazon has leased three big Milpitas buildings where the e-commerce giant could employ hundreds at a huge delivery hub, public records show.

In a major industrial lease, Amazon has rented a trio of large buildings that the tech behemoth intends to use as a delivery center on North McCarthy Boulevard in Milpitas.

Together, the three buildings total roughly 343,000 square feet, according to a site plan in a brochure prepared by commercial real estate firm CBRE.

CBRE executive vice president Chip Sutherland and senior vice president Vincent Machado are scouting for tenants to fill the McCarthy Creekside buildings. Sutherland and Machado declined to comment about the Amazon leasing deal.

The approximate sizes of the buildings, respectively, are 131,000 square feet, 122,000 square feet, and 100,000 square feet, the marketing brochure said.

The buildings where Amazon plans to establish its truck delivery center are at 707, 807, and 907 N. McCarthy Blvd., city documents showed.

A Milpitas document sketched out what the Amazon industrial hub would be — and what it won’t be.

“This would not be a fulfillment warehouse location where goods are stored,” Hexagon Transportation Consultants said in a report it prepared for city planners.

Instead, the focus would be on deliveries and the industrial hub would serve as a final jumping-off point for Amazon customers, the city report stated.

“The delivery station would receive already-packaged goods in large tractor-trailer trucks, sort them for delivery by location, and then dispatch vans for final delivery,” according to the city report.

Potentially hundreds of people could work at the Amazon delivery hub in Milpitas.

“The average number of employees on the project site would range from a low of approximately 75 in the late evening/very early morning hours to a high of approximately 200 between 6:00 a.m. and 7:00 a.m.,” the consultant’s report to Milpitas officials stated.

A variety of vehicles …read more

Source:: The Mercury News – Business

      

Reward upped to $150,000 for information in Santa Cruz tech entrepreneur’s kidnapping, slaying

SANTA CRUZ — A publicly-funded reward for information leading to the arrest of those involved in last month’s killing of Pleasure Point tech entrepreneur Tushar Atre is now $150,000.

The Santa Cruz County Sheriff’s Office also has released new video footage of three people they believe to be involved in the case walking out of an alley leading to East Cliff Drive. Officials are asking for the public’s help in providing identifying information related to the individuals by no later than Dec. 30. The reward money is being offered by private community members.

Tushar Atre

Those with information are asked to call Sgt. Jacob Ainsworth at 831-454-7635.

Atre, 50, was found shot and killed in a remote area of the Santa Cruz Mountains, where he owned property, after Atre was reported as kidnapped from his Pleasure Point Drive home around 3 a.m. Oct. 1. Investigators believe the incident began as a robbery.

Atre was CEO of web-design company AtreNet, which he founded in 1996. He was also the owner of Interstitial Systems, a Santa Cruz-based licensed cannabis manufacturer, according to state records.

…read more

Source:: The Mercury News – Business

      

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