PALO ALTO — Stanford College has gained possession of an enormous condo complicated in Palo Alto that’s subsequent to the school by means of a byzantine array of transactions, public data point out.
Oak Creek Flats positioned at 1600 Sand Hill Highway in Palo Alto is the residential complicated that’s on the heart of an internet of intricate actual property endeavors that Stanford wove this month.
The condo complicated totals 759 models in a number of three-story buildings subsequent to Stanford College.
Stanford, performing by means of an affiliate, accomplished two notable transactions: The university-controlled affiliate took over a $125 million mortgage that the sellers obtained in 2015, and the college’s affiliate additionally took possession of the bottom lease that the school had offered to the sellers.
The sellers of the bottom lease and the debtors of the $125 million mortgage had been San Francisco-based Merena Properties and Woodside-based Pivnicka Properties.
Each of those transactions had been accomplished a couple of days in the past, in response to paperwork filed on Sept. 15 with the Santa Clara County Recorder’s Workplace.
The college, by means of its board of trustees, had already owned the land beneath the condo buildings, even earlier than the current transactions. Stanford actual property official Jean Snider and college media relations representatives didn’t reply to requests for a remark concerning the Oak Creek Flats scenario.
The possession association for Oak Creek Flats mimics the true property construction that the college has established over a interval of a long time within the 700-acre Stanford Analysis Park in Palo Alto.
Quite a few buildings are owned by actual property traders or tech corporations that lease the land beneath the buildings from Stanford College. The college owns the land within the analysis park, which incorporates 10 million sq. toes of workplace house.
With the finished assumption and task transactions for Oak Creek Flats, Stanford College and its affiliate now personal the condo buildings and the land beneath the residential constructions, the county paperwork present.
By assuming the mortgage and being assigned possession of the bottom lease that it had beforehand offered to the homeowners of the buildings above the land, it seems that Stanford was in a position to skirt recording a deed that may give a exact value for the property.
The contact data and the mailing deal with for the affiliate are related to a Redwood Metropolis workplace for the Stanford land, buildings and actual property unit.
The assessed worth of the land and the buildings involving Oak Creek Flats was $34.7 million as of mid-2022.
But for not less than two causes, it seems the assessed worth is way lower than the market worth of the condo complicated and the land.
For one factor, the $125 million mortgage that was issued in 2015 to the sellers far exceeds the assessed worth.
Plus, whereas purchases of big condo complexes with a number of hundred models aren’t an on a regular basis prevalence within the Bay Space, some offers involving residential rental facilities in Santa Clara County this yr supply a clue as to the minimal worth of Oak Creek Flats.
Two huge condo buildings, the 551-unit Platform City Flats in San Jose and the 333-unit Eleanor Flats in Milpitas, had been each purchased for roughly $580,000 per unit in purchases that had been accomplished on the finish of July of this yr. These had been simple offers involving purchases of the land and the constructions.
Though Palo Alto industrial and residential actual property can typically be extra dear than properties in San Jose and Milpitas, the $580,000 worth for the current offers in San Jose and Milpitas would level to a price of $440 million.
Some property specialists consider Oak Creek Flats, contemplating the situation perched between San Francisquito Creek and the college, could possibly be value extra, probably placing the acquisition value within the $600 million vary.
Stanford College has purchased not less than one massive condo complicated close to the school.
In 2017, the college paid $130.5 million for a 167-unit condo complicated with ground-floor retail at 4740 El Camino Actual in Los Altos. The aim of that deal was to create a website for added housing decisions to learn Stanford workers and college.