Santa Clara housing project site is grabbed by NYC real estate buyer

Seller planned 1,100 homes on site — construction never started

SANTA CLARA, Calif. — An East Coast real estate investment firm has purchased an empty lot in Santa Clara where over 1,000 homes were proposed but never built.

According to documents filed with the Santa Clara County Recorder’s Office on October 25, Cerberus Capital Management, acting through an affiliate, paid $50 million for the property.

The newly purchased land totals 13.3 acres, implying a price of slightly less than $3.8 million per acre.

Cerberus purchased the undeveloped land from Greystar, a major developer of apartment and residential properties. Both companies did not respond to requests for comment.

According to county real estate records, Greystar appears to have made a tidy profit on the property transaction.

Greystar paid $35 million for the site in 2017. That equates to a 42.9% increase in the property’s value during the six years the residential developer owned the site.

Greystar proposed up to 1,100 residential units and 2,000 square feet of retail space at the time, according to documents on file with the Santa Clara Planning Department.

The project, which is located at 3905 Freedom Circle, has been approved by Santa Clara city officials, according to the city’s website.

However, the property remains undeveloped, as evidenced by a recent direct observation of the site by this news organization. There were no signs that any work had been done on the currently fenced-off and weed-choked site.

Based in New York City Cerberus Capital Management is a private equity firm that invests in a wide range of industries and businesses. It also lends money to people who want to buy real estate. Cerberus has purchased properties directly much less frequently.

According to county records, the Santa Clara development planned for the fallow property on Freedom Circle was to be built in three phases. The project also included a two-acre public park.