Multifamily Mixed Use Continues to Dot Transit Lines

MOUNTAIN VIEW, CA—The high cost of living is affecting residents across the region. Average monthly rental rates are $2,726 across all nine counties, up 4.8% from a year ago, according to a fourth quarter multifamily report by Kidder Mathews.

As demand remains steady, developers strive to deliver units near major transportation centers and amenities. This is especially evident in Silicon Valley where tech players remain on a hiring juggernaut fueled by a high-performing economy.

A recent example is Greystar’s apartment community just minutes from Google, LinkedIn and Microsoft. Elan Mountain View is a 164-unit development located on the corner of Castro Street and El Camino.

As a self-contained mixed-use property, the community also features 10,000 square feet of retail space, including a Peet’s Coffee and Mediterranean restaurant Rose Market. Elan Mountain View is in walking distance to the retailers on Castro street as well as the Mountain View Caltrain and VTA line.

“We increasingly have seen a growing trend of renters seeking housing that provides great walkability to major retailers, restaurants, green space and transit options,” Ali Warner, managing director of Greystar, Northern California and Pacific Northwest, tells GlobeSt.com. “Residents want the convenience that a centrally located residence provides, as it limits the time spent waiting in traffic. Elan Mountain View is ideally located on Castro Street and El Camino Real, Mountain View’s two main streets, allowing residents easy access to the variety of restaurants, neighborhood attractions, residential parks and retail that central Mountain View provides.”

Beyond transit proximity, Warner explains that tech is the predominant demand driver shaping developments.

“We are continuing to see the demand for high tech and community-building amenities shape rental developments, especially in the Bay Area,” Warner tells GlobeSt.com. “Today’s renters want to have technology seamlessly incorporated into their everyday lives–whether that includes a Nest thermostat within their unit or high-tech co-working spaces with WiFi within the building. Additionally, renters are seeking connective spaces such as outdoor amenity decks or game or club rooms where they can bring friends or interact with their fellow residents. At Elan Mountain View and throughout our Greystar developments, we seek to incorporate both of these types of amenities, while also delivering an elevated level of service and high-quality residences.”

The community first began pre-leasing in April 2018 and completed construction in December 2018.

“Elan Mountain View caters to renters who seek wellness, high tech and community-centric amenities as it features a fully equipped fitness center, a business center complete with meeting space, and a club room with a tasting kitchen and entertaining areas,” Warner tells GlobeSt.com. “The most standout amenity, beyond the property’s close proximity to amenity-rich downtown Mountain View and various nearby transit options, is an outdoor courtyard featuring a sun deck, fire pits, grill area and Bosque garden with an edible garden for residents.”

The development is already 80% leased, indicating the strong demand among the region’s renter pool.

“A key determining factor in our development of Elan Mountain View was the increased demand that we saw along the Peninsula for condo-quality rental housing,” Warner tells GlobeSt.com. “The velocity at which the building has leased up thus far certainly points towards pent-up demand in the marketplace, and we are continuing to see increased need for market-rate rental housing across the Bay Area due to both a robust job market and the steep cost of for-sale housing.”