Apartments at Santana Row in San Jose are bought for $140 million-plus
SAN JOSE — A big apartment complex at Santana Row has been bought for more than $140 million in a deal that marks the second sale of an apartment hub in the San Jose mixed-use neighborhood in less than a year.
Misora, a 212-unit apartment property located on Hatton Street between Olin Avenue and Olsen Drive in San Jose, has been bought for $148.5 million, according to documents filed on Feb. 5 with the Santa Clara County Recorder’s Office.
Chicago-based Waterton, a real estate investment firm, bought the Misora property from Federal Realty Investment Trust, the principal developer and owner of Santana Row, a destination mixed-use retail, dining, housing, entertainment, residential, and hotel neighborhood in west San Jose.
In May 2025, Federal Realty sold Levare, a 108-unit apartment hub at 3003 Olin Ave. in Santana Row. Hines, a major real estate firm, paid $73.9 million for Levare, which worked out to $684,300 a unit, one of the higher per-unit prices for apartment complexes in the South Bay since the coronavirus outbreak.
The just-completed deal for Misora works out to $700,500 a unit, a price that suggests Santana Row apartment properties are producing robust values despite financial setbacks for some South Bay residential hubs.
On Jan. 28, the Fay, a 336-unit apartment tower in downtown San Jose, was foreclosed due to a loan delinquency. As a result of the foreclosure, the lender placed a value on the property of $110 million, or $327,400 per apartment.
Even as Federal Realty sells some of its apartment properties at Santana Row, the real estate firm is developing new residences in the west San Jose neighborhood.
In 2025, Federal Realty launched construction of a 258-unit apartment complex at 358 Hatton St. This project represents Federal Realty’s first new residential development in 10 years.
The new owner of the Misora apartments is eyeing a wide-ranging upgrade of the just-bought property.
“Waterton will upgrade residences to a modern finish level, including vinyl plank flooring and new lighting and plumbing fixtures throughout, quartz countertops, new backsplashes, and a new technology package,” Waterton said in a statement the company sent to this news organization. “Stainless steel appliance packages and cabinets will be added as needed.”
Federal Realty said that from time to time it takes steps to unload properties, which was the case with the recent Misora and last year’s Levare apartment sales at Santana Row.
“We’ve been doing this for decades, pruning, reinvesting, and staying patient when the environment demands it,” said Federal Realty Chief Executive Officer Don Wood.
Waterton sees plenty of upside in owning an apartment complex such as Misora that’s part of the Santana Row neighborhood.
“Demand continues to be driven by the tech sector in this high-barrier-to-entry district that hasn’t seen a new apartment delivery in nearly a decade,” said Ben Slack, a Waterton vice president and director of acquisitions.
With the Misora purchase, Waterton now owns 920 apartment units in the Bay Area.
“We’re currently seeing favorable market dynamics and strong supply-demand fundamentals prevail across the Bay Area and throughout Silicon Valley,” Slack said.