San Jose, Calif.-based Technology Credit Union on Wednesday said it is providing a $23.4 million construction loan to Republic Urban Properties to fund the development of an 83-unit apartment building, a single-story underground parking lot and 7,000 square feet of mixed-use retail in downtown Morgan Hill, Calif.
This is the second commercial loan of this size in 2018 for the $2.5 billion Tech CU. In February, it made a $23 million construction loan to W.L. Butler, Inc., to fund the development of a 60-unit apartment building overlooking Central Park in San Mateo, Calif.
The newest development is named the “Sunsweet Project” because the Republic Family of Companies will be constructing on what once was a Sunsweet raisin drying warehouse. At completion, the new, mixed-use luxury apartment community will become the tallest building in the downtown Morgan Hill area.
According to the developers, the Sunsweet site is located steps away from Caltrain on Depot Street in Morgan Hill, and is convenient to Highway 101, offering access to the San Francisco Bay Area and Silicon Valley’s top employers. The project will provide a collection of amenities, including a swimming pool, spa, state-of-the-art fitness center, indoor and outdoor lounges, grilling stations, an outdoor playground, community room, and dog park.
“The apartments are poised to become an urban community – blending stylish residences and deluxe amenities with convenient access to retail shopping, restaurants and public transportation,” Republic said in a statement.
“We had the privilege of providing financing to the Republic Family of Companies on a prior occasion a couple of years ago. They are exemplary developers and real estate investors and know how to create projects that embody the character of the location where they are building,” said Joe Anzalone, chief commercial banking officer at Tech CU. “We are thrilled to be able to provide construction financing for this very well-conceived project.”
“There were a variety of factors that drew us to this project, including Morgan Hill’s vibrant night life, outstanding restaurants and charming wineries,” said Michael Van Every, president and CEO of Republic Urban Properties LLC. “However, what made this project really special is its close proximity to the Caltrain stop. Transit-oriented developments are a Republic specialty.
“We chose to work with Tech CU because we had a great experience with them on a previous project,” Van Every added.
Tech CU serves more than 95,000 members throughout the San Francisco Bay Area, including employees of such companies as Tesla, eBay, Applied Materials, Nvidia and Facebook. It was founded in 1960 by employees of Fairchild Semiconductor.
The credit union said it specializes in both residential and commercial construction loans, offering competitive fixed and variable rates. The credit union said its commercial real estate loans can be used for acquisition, construction and refinancing.
Republic Family of Companies is a privately owned real estate investment, management and development enterprise that encompass several businesses, including Republic Properties Corporation, Republic Urban Properties LLC, Republic Land Development and Republic Metropolitan with offices in Greenwich, Conn., Washington, D.C., and San Jose, Calif.