SUNNYVALE — A big apartment complex in Sunnyvale has begun to scout for tenants, a leasing effort that could bring several hundred residents into the city’s increasingly busy downtown.
The Martin this past weekend began offering its 479 apartments for rent, according to Sares Regis Group of Northern California and Hunter Partners, the real estate alliance that is developing the Cityline mixed-use neighborhood in downtown Sunnyvale.
The luxury apartment complex consists of two 12-story towers and the apartment units will be made available in phases. Phase one consists of 220 units and phase two consists of 259 units.
Demand appears to be brisk, according to Sares Regis and Hunter Partners.
“We have about 1,500 people on the interest list,” said Jeff Smith, director of development and senior vice president with Sares Regis Group of Northern California, a veteran residential development firm.
The developers of the apartments believe current economic conditions could help them entice prospective renters.
“The mortgage rates for houses being sold are very high and might make it tougher to buy,” said Drew Hudecek, chief investment officer for Sares Regis Group of Northern California.
Hudacek believes the apartment sector is relatively healthy in this region, including the South Bay.
The apartment market’s health contrasts sharply with the fading fortunes of the Bay Area office sector.
“Things are very good for apartments because of demographic shifts,” Hudacek said. “Jobs are available, workers are getting back to the office, people are returning to the Bay Area compared to where they were living” in the communities that border the nine-county region.
As part of the initial weekend of leasing for The Martin, the Cityline developers offered discounts to the first 50 people who leased units in the apartments.
Sares and Hunter have completed hundreds of apartments and numerous retail spaces in the early stages of the Cityline neighborhood, which is a modern mixed-use development next to Sunnyvale’s traditional downtown.
Cityline has effectively become an extension of downtown Sunnyvale.
“Within the past few years, we have opened a Whole Foods, AMC Theater, along with new retail, food, and beverage options like Pacific Catch, Urban Plates, Tipsy Putt, and the Melt,” said Curtis Leigh, a principal executive with Hunter Partners.
More retail spaces are being offered to additional restaurants, according to Leigh.
“We have a lot of good momentum on the retail spaces,” Leigh said.
The Cityline neighborhood will also feature a micro Central Park called Redwood Square. An array of cultural and entertainment activities are envisioned for the open space and gathering area.
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A huge challenge for the Cityline developers is to attract tenants to the office complex that’s under construction in the evolving neighborhood.
Tech companies are attempting to sublease a mammoth amount of office space in the Bay Area, which has unleashed a torrent of empty offices in the region.
The Cityline office buildings are each seven stories and each total about 300,000 square feet. The developers anticipate that the offices will be completed and available for tenants by the end of this year.
CBRE, a commercial real estate firm, is seeking office tenants.
“We have done multiple tours,” said Josh Rupert, director of development with Hunter Properties. “The amenities of downtown Sunnyvale speak for themselves.”
Cityline’s developers believe the neighborhood can usher in big changes for downtown Sunnyvale.
“Downtown Sunnyvale is becoming a real landmark in a way that it never has been,” Hudacek said.
