I graduated from college in 2008 and took my first job at a shopping center REIT in the midst of the GFC. No one was buying but I had a mentor and visionary boss who always used to say the best money is made when you’re willing to zig when others zag. We were the first group out there buying in 2009 and 2010 when everyone else was too scared to act. That resulted in big wins and it feels like we are in a similar time right now.
In Santa Clara, we’ve just broken ground on a 328-unit multifamily community. What makes this project unusual is that, in a market where almost no one is starting new ground-up development, we chose to move forward.
Why? Three reasons:
1. Long-Term Vision Over Short-Term Noise
Real estate cycles are measured in decades, not quarters. By the time this project delivers, the existing supply will have been absorbed and the capital markets environment will look very different. My family has owned the land since the 1970’s, we have had the patience and we know the right time is now.
2. Yield Is Earned in the Hard Times
It’s in markets like this that cost efficiencies, favorable land positions, and differentiated product types can be secured. The margin of safety is greater when you’re not bidding against everyone else.
3. Santa Clara’s Fundamentals Haven’t Changed
Steps from some of the most important technology campuses in the world (NVIDIA, Apple, etc.), Santa Clara still faces a chronic housing shortage. Population growth and job creation continue to outpace supply. Families, workers, and communities here still need quality housing. That’s not cyclical, that’s structural.
For us, ground-up multifamily in Santa Clara isn’t just about units. It’s about creating long-term value, for residents and investors alike. At Westlake Realty Group we feel grateful to have found an institutional capital partner willing to take the leap of faith with us and are excited to see this project to fruition. What are you doing to find alpha in today’s market?
