CC 05-13-02 Ar hive
A(~ENDA
CUPERTINO CITY COUNCIL'- REGULAR ADJOURNED MEETING
CUPERTINO PLANNING COMMISSION- SPECIAL MEETING
10300 Torre Ave., Conference Room C
Monday, May 13, 2002
4:30 P.M.
CALL TO ORDER
ROLL CALL
ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the council on any matter
not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will
prohibit the council from making any decisions with respect to a matter not listed on the agenda.
STUDY SESSION - 4:30 p.m.
1. Joint meeting of the City Council and Planning Commission to introduce a plan by
Prometheus Real Estate Group to redevelop a portion of the existing Villa Serra and
Orove Apartments located on Homestead Road near Stelling Road.
RECESS - 5:45 p.m.
COMMISSION INTERVIEWS - 6:00 p.m.
2. City Council interviews of applicants for the Planning Commission
ADJOURNMENT
Cib~ of Cupertino
10300 Tone Avenue
Cupertino, CA 9S014
dUPEILTINO
FAX (4o8) ~'~-~
Community I~velopment Depa,~,e~t
Housing 9e~ices
SUMMARY
Asemia Item No, I Aseuda Date: May ~3, 2002
Subject:
Joint Study session to introduce a plan from Prometheus Development
Corporation to redevelop a portion of the existing Villa Serra and Grove
Apartments located on Homestead Road near Stelling Road.
Recommendation:
Provide early feedback to the applicant about the proposed project. This
information is being provided for discussion purposes only and no action is
necessary at this point. After receiving your early feedback the applicant intends
to prepare a development proposal for your review through the formal public
hearing process.
Background:
Over the past year, Prometheus has been meeting with city staff to discuss
redeveloping the 336-~t Villa Serra Apartments and the 52-unit Grove
Apartment located on Homestead Road near Stellirtg Road. The combined
projects totals 388 units situated on a site area equal to approximately 24.5 net
acres.
The Homestead Road area encompassing the Villa Serra and Grove Apartments
sites was designated for up to 50 housing units per acre under the revised
Housing Element and Land Use Elements approved in October 2001.
Last year, Prometheus provided the City with a master plan (see attached) for the
complete redevelopment of the Villa Serra and Grove apartments. The buildings
were expected to be 'four stories. The master plan would have been constructed in
phases, but the City was assured that the applicant intended to construct the entire
plan.
More recently, due to the changing economic conditions, Prometheus has
modified its plans to develop only a portion of the site. In the latest plan,
Prometheus proposes a partial redevelopment that would build approximately
400 new units and demolish approximately 130 existing units (approximately 1/3
of the existing 388 units) for a net gain of approxin~ately 270 units. The exact unit
count is still under review. Prometheus indicates that if cannot provide
I-I
Joint Study session to introduce a plan from Prometheus Development
Corporation to redevelop a portion of the existing Villa Serra and Grove
Apartments located on Homestead Road near Stelling Road.
May 13, 2002
Page 2
assurances that the remainder of the site would be redeveloped in the near future.
Consequently, the City needs to view the partial redevelopment proposal as the
final development pattern for the foreseeable future. Attached are some zeroxed
copies of the original master plan and a portion of the latest elevation exhibit for
the Council and Planning Commission review. The applicant is reviewing
alternate site plans and will present preferred plan concepts and full elevation
exhibits at Monday's meeting.
Discussion:
Staff has identified several major issues associated with adding higher density
housing in this area as follows:
· Need for Public Open Space (there are no existing City of Cupertino public
parks in the area).
· Bicycle and pedestrian access through the site from Stelling Road to Franco
Court and out to Homestead Road.
· Pedestrian/bicycle enhancements to the Stelling Road Highway 280 overpass.
· Traffic Mitigation.
· Site design relationships and building interface of the new four-story buildings
with the existing older two-story apartments.
· Long-term site relationship to adjacent commercial centers (Brunswick and
Homestead Square).
· Retention and relocation or replacement of existing trees.
· Reduction of the more affordable market-rate housing stock.
· Early notice and relocation assistance to tenants displaced by the
redevelopment
Prepared by: Vera Gil, Senior Planner
Subm~. "~ed ?o/'-~ Approved by:
Steve riasecki, David W. Knapp
Director of Community Development City Manager
Enclosures:
Color zerox of the elevations and master plan
JOint Study session to introduce a plan from Prometheus Development
Corporation to redevelop a portion of the existing Villa Serra and Grove
Apartments located on Homestead Road near Stelling Road.
· ~. May 13, 2002
Page 3
Aerial photograph
J. BnoD ODN¥~Id
~ , : .~., ~ ~. . ,.
J. :1. -,
' ",~ - ' '-
STELLING ~OAD
Villa Serra Redevelopment
Cupertino, California
~rom~h~u~ R~al ~tat~ ~rou~
THE
FOLLOWING
ITEMS
WERE
PRESENTED
AT THE
MEETING
'""?' Acquisitions and Development
>5..'~' "'~
~" ':"~ Prometheus is recognized for its foresight and quality of
i' '::'" site acquisitions, ~th m~y of its properties se~ing as the
¥~ catalyst for further upsc~e development and revitalization
~. ~ of the neighbo~g areas.
~.. : :. .~5~ :;:~g~~... Emphasizing its strict design st~dards for eve~ develop-
ment project, Prometheus selects internationflly respected
architectur~ fi~s- those possessing the proven ability to
create outstanding 1Mug environments. Prome~eus directs
its archite~s to m~e ~a~ative use of ~e namr~ attfibut~
~. :. ~:: ~.. ~ ~. ~ ::~: :: :~r.:j of a partic~ar prope~y, while at the s~e time formulating
'~'~:3 '~ ] I'- ~ ::~7'~ '?~&~ ":~g: ;: :5~ ''~ ~ ~:~ ~ ~ ~ ~ ~ ,. ~ originfl design concepts and exhibit~g unfaltering atten-
' 'l;;I ~ '~;I l:lllll~l' ~ S~ tion to detail. In addition to the achievement of economic
I"1...:iI . ~:.. '' :1 .... I~ ~,~ success, many prope~ies developed by Prometheus have
, ~ ~ , , , , received nation~ architectur~ and design awards, as weU as
recognition from civic and comm~ity organizations.
The majority of the residential and commercial properties
~~ll~~"~ ~ ~ developed by Prometheus are located in the Silicon
-'~ ~: Valley, which historically has had one of the most complex
entitlement environments in the United States.
The Prometheus team is comprised of professionals who
have a long record of success in working with cities and com-
munities to solve the site and planning challenges associated
with the development and approval of landmark projects.
PROMETHEUS REAL ESTATE GROUP, INC.
Property Management
Services
Prometheus has earned a reputation for innovation, respon-
siveness and a commitment to excellence. The firm offers
~-- ~~,~. proven abilities in obtaining occupancies in excess of 95%
-'~ "J ~.~_ throughout market cycles and attaining one of the highest
tenant retention ratios in the industry. Prometheus is one
of the select management firms nationwide that has been
· '.:.~ awarded the Accredited Management Organization (AMO)
/f , designation by the Institute of Real Estate Management
/ ,,' (IREM). The firm's relationships include major blue chip
' -" - institutions such as Northwestern Mutual Life, CIGNA,
? /- ' Teachers Insurance and Annuity Association of America,
~' ~.~ ~'~1_ ~.... i ~ Bank of America, and GE Capital, as well as private investors.
'. The company's approach adapts many of the tools, techniques,
~C:i .~:~ _.. .~:~ and methods used by outstanding service organizations in
~ ~~ .... .....~ '?. other industries. The better the service package we provide,
the more desirable the product becomes, and the greater
the value of the real estate. Our trademark has been to recruit
the best people, cross train them, and provide incentives for
l~ ~ recognition as well as the opportunity for personal develop-
.. ;_1: ' ~ ' ment and professional growth. We place financial resources
'i.::; I behind the recommendations of our staff to constantly test
t i t new programs such as detailed irrigation mapping, inter-
: active media presentations in apartment community offices,
!
' private concierge services, variable commission structures
: "· and annual leadership and maintenance conferences.
Prometheus is a full-service organization with a track record
of providing concise, timely and accurate reporting, creative
and aggressive marketing programs, management of new
development and lease-up, due diligence, construction and
- ,~. , ,.:~. architectural consulting services.
%~r SERVICES INCLUDE:
...;,'? · Due Diligence/Inspection * Facilities management
:" :' · Preparation of business · Customized financial
., . ¢ ~! plans, operating budgets, reporting
and marketing plans
~ : i · Tax preparation
· Implementation and
:. supervision of capital · Operational proforma
'! improvements development
- · Asset rehabilitation · Investigation and
remediation of
and repositioning construction defects
· Financing
· Electronic reporting
PROMETHEUS REAL ESTATE GROUP, INC.
Corporate Services
Finance and Accounting
Prometheus' finance, accounting, and asset management
teams are experts at lender relations, cash management,
tax reporting, and property valuation. Our highly skilled
accountants provide comprehensive financial analysis and
account management. A wide variety of customized financial
reports are available to our dients and management teams.
Prometheus can offer clients the flexibility of financial
reporting tailored to the client's own chart of accounts.
Creative Resources
/ Creative Resources has extensive experience in repositioning
/' properties and helping to launch newly acquired or newly
' developed assets· This team is recognized for its creative
~ and successful leasing strategies, interior design capabilities,
· ,...., and outstanding marketing collateral material including
· . advertising, identity packages, and direct mail campaigns·
-. Human Resources
~l Human Resources assists with employee relations, compen-
· .. sation, benefits, training, and the recruitment and selection of
i t~ ~ ~ personnel. Prometheus' HR team provides motivational and
leadership skills, performance evaluations, and competi-
tive compensation analysis. Our advanced training programs
ensure staff development and retention, and provide a
recruitment advantage.
Information Technology
Prometheus is committed to maximizing efficiency and
productivity through the use of information technology.
Our entire organization is interconnected through a Wide
Area Network for the purposes of resource sharing and
on-line collaboration. Our computer literacy program is
designed to facilitate and foster the highest levels of
technological proficiency.
Risk Management
Prometheus' Risk Management group provides comprehen-
sive insurance coverage analysis, loss control inspections,
monitoring of employee safety programs, and interacts with
brokers to ensure our organizational understanding of all
forms of risk. Our portfolio insurance plan allows clients to
be covered under a blanket policy, regardless of the size of
their portfolio.
PROMETHEUS REAL ESTATE GROUP, INC.
Miramar
LOCATION
FOSTER CITY, CALIFORNIA
Miramar is a 159-unit waterfront apartment communitz
which is scheduled for completion in 2002. Located in
Foster City, California, Mirmar is a joMt effort with the
City of Foster City redevelopment agency. Previously the
site of the Port O'Ca~ Shopping Center, this development
not o~y replaces a blighted ret~l center wi~ an architec-
turally outstanding residenti~ project, but it ~so brings
needed housing, both market rate and affordable housing
(thi~y percent of the project) to the fast growing North
Peninsula sub-market. The award-winning Guzzardo
Pannership designed the landscape architecture and site
pl~. ~e project will include a pool and spa, dazzlNg
recreation facilities, and gathering spaces for small groups.
These spaces are adjacent to the lagoon frontage. The
property ~so has a landscaped "Paseo" ~d fountain for
semi-private outdoor use. Outstanding amenities include
high speed intemet wirNg, fu~-size washer/dwers, ~ique
loft units, extensive tile flooring throughout, upgraded
carpets, rounded corners, crown mold~g, top of the 1Ne
interior finishes and recessed lighting.
PROMI?,THEUS REAl, ESTATE GROUP, INC.
Cupertino City Center
~r~'-' ~ ~ LOCATION ~
CUPERTINO, CALIFORNIA
PROJECT TYPE
MIXED-USE -;
.... ~ ~ %,, SIZE r ~ ~ .~
~" " "':':· '"': 26 ACRES :
Cupertino City Center is a $400 million master-planned
community, located in the heart of Silicon Valley. The
. development successfully mirrors both the company's
~' ' standard of high quality and its philosophy of creating
commercial and residential properties in the finest locations
throughout the West.
The master plan and the design of the first four office
buildings, completed in the late 1980's, is credited to the
internationally-recognized architectural firm of Hellmuth,
Obata & Kassabaum, also known for the award-winning
George Moscone Convention Center and Levi Plaza, both
in San Francisco.
The latest phase of the project, scheduled for completion
in 2002, includes a 206-unit apartment community by
Prometheus, and a 224-room full service hotel by San
Francisco-based Kimpton Hotel Group at the corner of
DeAnza and Stevens Creek Boulevards. This phase will
wrap around a nearly 1-acre city plaza and street corner,
and will include adjacent retail shops and restaurants,
providing local residents with a long-awaited central
gathering place for outdoor dining and special events.
Cupertino City Center is a world-class master-planned
community and a prototype example of mixed-use
developments for years to come.
PROMETHEUS REAL ESTATE GROUP, INC.
Mountain View City Center
LOCATION
MOUNTAIN VIEW, CALIFO~IA
PROJEGT
TYPE
~*'- ,
M~EV-Us~
. ,~ ~.:,;,. d
sI~
11 AC~S
~is nationa~y recognized, award-~n~g $150 m~ion
mixed-use property is located h &e heart of do.town
Mounta~ Vi~. The prope~y is within waling distance
of the n~ City Ha~ and Center for the Pedo~hg Arts.
This d~dopment was a catgut for the revit~ization of the
historical district.
HIGHLIGHTS~
· Ci~ Center, a five-sto~ class A commerciM building
consist~g of 112,146 square feet of office ~d ground
floor retail space.
· P~k Place, a luxuw apartment community consisting
of 370 apartment homes wi~ raised courtyards, mature
l~dscaping, ~d open-air plaza.
· Park Place Sou~, a luxu~ apa~ment community with
120 apartment homes and 6,500 square feet of ground
fl~r retail space.
PROMETHEUS REAL ESTATE GROUP, INC.
Mansion Grove
'i:. LOCATION
· ' SANTA CLARA, CALIFORNIA ..
PROJECT TYPE
MULTI-FAMILY
APARTMENT HOMES
SIZE
Built in three phases from 1987-1989, this 8?6-unit property
'~,. is one of the company's flagship assets and remains one of
. :..~ the premier apartment communities in the Silicon Valley.
The location was formerly an industrial area, and
Prometheus' foresight with this large acquisition led the
way for the future development and revitalization of the
neighboring properties and surrounding community.
This architecturally distinctive property is situated in a
!~ .¥ park-like setting just west of the Guadalupe River and
~: ~,:~:?:: ~:. :~ features an outstanding amenity package including an
:~:.,:... ;~,~,: '~,,, ~
?' ~ . ':i on-site convenience store, three swimming pools, a health
:~. ': ~, ; ~.~ · and exercise facility, and lighted tennis courts. The James
~'~i~ ~ ~ ,~ :!~ ~4~ Lick Mansion is incorporated into the 29-acre site, lending
distinctive architectural flavor to the property. This design
~ is further reflected in Mansion Grove's leasing office and
~ main recreation center.
I
PROMETHEUS REAL ESTATE GROUP, INC.
Sterling Village
...... PROJECT TYPE ~...
MULTI-FAMILY
:'.,~,.' '.'?~'c'~ APARTMENT HOMES
:,.~.~; · ::.,!e,.i!
'"'~.~5 ." 7.:.... SIZE
:,?: .-... 54 Acmes
...:~!~' ,. ..
.. :'.,!i;; ." :..:.. .
i~ The first phase of Sterling Village, 300 units in South
~ Jordan, Utah, is an innovative project, which is compara-
tively leagues ahead of the product in the marketplace.
It is based on the reasoning that a certain segment of the
market, including people from out of state, would appre-
ciate an apartment home that was large, had outstanding
amenities, and was architecturally innovative. Prometheus
received unanimous staff, planning commission, and City
Council approvals for this property in South Jordan, Utah,
a community which had previously not approved more
than 100 apartment units. Upon completion, Sterling Village
~. will be the largest apartment community in the State
g .
O~ Utah.
~ ,~ The elevations feature a combination of brick veneer and
light gray beige palette stucco. The philosophy underlying
the site plan design was to create neighborhoods and a
village character. We interplay the massing to make the
property more in character with its surroundings. There
,;~ is a combination of one-story, two-story and three-story
i building types, and the buildings are'oriented to maximize
the views and open space. A four-lane tree lined street
-;, .... · ~ provides a grand sense of entry, opening to the entry plaza
~ ' ,~ and grand recreation center, which are the focal points of
· the community. The luxurious recreation room facility is in
. ~ excess of 4,500 square feet and creates an outstanding first
~ impression to the property.
PROMETHEUS REAL ESTATE GROUP, INC.
Residential Properties
Prometheus has over 3:5 years of experience in developing
and managing award winning residential apartment commu-
nities throughout the western United States.
NORTHERN CALIFORNIA
......... ALAMEDA SAN JOSE
· Southshore Beach · Casa Verde
~"~'~l~l~ll~ ~ and Tennis Club · Pacific Terrace West
Foster City~~~. ~'-~ · Sierrabrook
Mountain Vie CUPERTINO · Sunrise Garden
· Cupertino City Center Apartments
Apartments
· Cupertino Park Center SANTA CLARA
· Verona * Alderwood
· The Biltmore · Boardwalk
· Villa Serra · Mansion Grove
· Orchard Glen
EL SOnR~d~TE · Park Central
· Mediterranea · Timberleaf
FOSTER CITY SUNNYVALE
· Miramar · Kensington Place
· Shadowbrook
LIVERMORE · Trellis Square
· Rhonewood
WALNUT CREEK
MOUNTAIN VIEW · Bay Landing
· Heatherstone
· Park Place
· Park Place South
RICHMOND
· Hilltop
SOUTHERN CALIFORNIA
ANAHEIM HILLS THOUSAND OAKS
· Cascades · Los Robles
REDLANDS
· University Plaza
PROMETHEUS REAL ESTATE GROUP, INC.
Residential Properties
Prometheus has over 35 years of experience in developing
and managing award winning residential apartment commu-
nities throughout the western United States.
ARIZONA
PHOENIX SCOTTSDALE
· Papago Crossing · Bellagio
· Porto£ino · Scottsdale Somerset
· Sunscape
OREGON
PORTLAND
· Woodlake
UTAH
SOUTH JORDAN
· Sterling Village
WASHINGTON
BELLEVUE FEDERAL WAY
· The Lakes · The Cove
· Timberwood · Cove East
· Woodside East
LYNNWOOD
KENT · Millwood Estates
· Cottonwood
PROMETHEUS REAL ESTATE GROUP, INC.
Commercial Properties
Prometheus has extensive experience in developing, man-
aging, and leasing over 3 million square feet of Class A and
Class B properties throughout the five-county Bay Area.
Over 1.5 million square feet of office space is located in
the Silicon Valley.
THE PENINSULA
· 275 Valley Drive
'-~..j · The Atrium at Waters
Technology Park
· The Waters at Waters
Technology Park
· Mountain View
City Center
· Mountain View
Office Center
THE SOUTH BAY
· Cupertino City Center
· University Plaza
· San Tomas Square
· Creekside Center
THE EAST BAY
· 201 North Civic
PROMETHEUS REAL ESTATE GROUP, INC.
Prometheus Design Awards
California Landscape Contractor Gold Nugget Award of Merit Excellence Award
Association Statewide Trophy Award Pacific Coast Builders Conference City of Beaverton
Alderwood Apartments (best apartments 1-2 stories) Glenbrook Apartments
Santa Clara, California Sunscape Apartments Beaverton, Oregon
Scottsdale, Arizona
California Landscape Contractor Feature Performance Award
Association Statewide Trophy Award Environmental Award Professional Builders
Park Place Apartments Seattle King County Board of Realtors Shorebird Solar Condominiums
Mountain View, California The Lakes North Redwood Shores, California
Bellevue, Washington
City of Mountain View, Mayor's Award Environmental Award
Exceptional Mixed-use Office and Award of Merit for Design Excellence, Seattle King County Board of Realtors
Residential Project AIA The Lakes South
Mountain View City Center and Civic Executive Center Bellevue, Washington
Park Place Apartments Walnut Creek, California
Mountain View, California Feature Performance Award
Honorable Mention, Builder's Choice Professional Builders
Gold Nugget Award of Merit Ocean Point Forbes Mill Condominiums
Pacific Coast Builders Conference, Pacffica, California Los Gatos, California
(best residential product level site
plan - under 25 acres) Honorable Mention, Builder's C~oice Mayor's Award
Mountain View, California Shorebird Solar City of Mountain View
Redwood Shores, California Rock Creek Condominiums
Outstanding Office Project Mountain View, California
Presented by San Jose Metropolitan Award of Merit, Builder's Choice
Chamber of Commerce and Association The Lakes Grand Gold Nugget Award
of South Bay Brokers Incorporated Bellevue, Washington Pacific Coast Builders Conference
900 East Hamilton Avenue & Builders Magazine
Campbell, California Grand Award, Builder's Choice The Waters
Cove Apartments Mountain View, California
Gold Nugget Award of Merit Federal Way, Washington
Pacific Coast Builders Conference (best First Award
apartment project - three stories or more) Gold Nugget Award of Merit Landscape Contractors Association
Benton Park Central Pacific Coast Builders Conference Waters Office Park
Santa Clara, California & Builders Magazine San Mateo, California
(best attached homes)
Gold Nugget Grand Award Shorebird Solar Condominiums Award of Merit
Pacific Coast Builders Conference Redwood Shores, California Excellence in Design,
(best commerdal over 100,000 RSF) Red Cellar Shingle & Shake Bureau
Civic Executive Center Gold Nugget Award of Merit Ocean Point
Walnut Creek, California Pacific Coast Builders Conference Pacifica, California
& Builders Magaz~e
Gold Nugget Award of Merit (Single family attached development) MaYOr's Award
Pacific Coast Bnilders Conference Shorebird Solar Condomim'uras City of Mountain View
(best commercial over I00,000 RSF) Redwood Shores, California The Waters
The Atrium Mountain V'~, California
San Maten, California Cimdon of Merit for Plywo~l
American Plywood Association Gold Na~ge~ Awas, d of Metlt
· Gold ~ Award of. Marit ' .& Professional. Builder . Pacific Cosst Builders Conference .. . ' ......
· . P~ific Ctmt'Builders Confertn~ .. CoveEast'Apartments & ..It~.~ ........ ? ........ .:.
Posted on Wed, Apr. 03, 2002
· sh O, uo
Bay Area apartment rents continue fall · $~'~to~ ,
CONSUMERS FLEX i>OWER 'FO NEGOTIlATE By Sue iM.cAllister ~r~44~0 ~ ~tl~JO0-J-
Mercury News
Average apartment rents in the Bay Area continued to fall in the first quarter of the year, though
apartment complexes in some areas are slightly more full than during the last half of 2001,
according to an apartment market survey.
For Santa Clara County, the average rent for all sizes of apartments this quarter was $1,542.
That's down nearly 30 percent from $2,200 a year ago, and down 5.5 percent from $1,631 in the
final quarter of 2001.
At 94.1 percent, occupancy rates in the county were lower than a year ago, but slightly higher
than the low of 91.5 percent recorded in the last part of 2001, according to data compiled by
Axiometrics. The Dallas finn surveys apartment owners and managers quarterly.
As demand for apartments remains relatively slack, many renters arc finding they have thc power
to negotiate for lower rent with their current landlords when their leases expire, or for price
breaks with a new landlord.
"If you're willing to go talk with them, they will and they do have the power to negotiate," said
Matt Dullaghan, who has toured about 15 apartment complexes since he began looking for a new
place in October.
Dullaghan, 30, a financial adviser who also works a part-time bartending job, shares a $1,500-a-
month San Jose apartment with a roommate but hopes to move into his own place this summer.
He wanted to find a place with all things that matter to him -- parking, in-unit laundry machines,
air conditioning and a safe neighborhood -- for about $1,000 a month. "I don't think that's going
to happen," he said this week.
Axiometrics President Ron Johnsey forecasts that rents in Santa Clara County will decline a total
of about 11 percent this year, before rising about 10 percent in 2003.
Jolmsey said the Oakland metropolitan area is likely to see rising rents first, followed by San
Francisco. San Jose will be last, he said, because many newly built apartments have come onto
the market since the economy tanked.
"San Jose has had more units delivered into that market, and just horrendous job loss," Johnsey
said, which helps explain why rents have dropped more precipitously in Santa Clara County than
in other parts of thc Bay Area.
In the San Francisco metro area, which also encompasses properties in San Mateo and Marin
counties, average rent was $1,738 this quarter, down 27.3 percent from a year ago, and down 2.9
percent from fourth quarter 2001.
The Oakland metro area, which includes large swaths of Alameda and Contra Costa counties,
had an average rent of $1,364, a decline of 21 percent from a year ago and of 2.4 percent from
the end of 2001.
Because average rents in the Bay Area reached their peaks in thc first quarter of 2001, these
year-over-year rent changes look especially dramatic. For comparison, Axiomctrics data shows
thc average rent in Santa Clara County has now dropped to about what it was at thc end of 1999.
Page 2 of 2
Axiometrics found that about 73 percent of apartment managers in Santa Clara County were
offering concessions this quarter -- a month's free rent, for example. Last quarter, 87 percent did
SO.
In San Francisco-area properties, concessions were offered 69 percent of the time; in the
Oakland area, the figure was 77 percent.
Graduate student Janice Lilien wanted a place of her own. But after about three weeks of
looking, she settled on a shared house in Santa Clara that she and her eat could move into for
$700 a month. Lilien, who is trying to finish her master's thesis in ergonomics and look for a job
to replace the one she lost in August, said rents certainly have come down since the last time she
looked for rental housing.
"But not enough for me to afford my own place yet," she said. "If I had any kind of job that paid
decently I could probably get a studio for about $1,000." But that is much more than her current
budget can handle.
Axiometrics surveyed 151 complexes with a total of 41,036 apartment units in the San Jose, San
Francisco and Oakland metropolitan areas.
Axiometrics also released a forecast Tuesday that called the three Bay Area metropolitan areas
the best large markets for apartment investors to buy into now, based on predictions of job
growth and other economic factors in 2003 and 2004.
The rental market may be soft as far as developers are concerned, but rents still haven't fallen
enough to satisfy renters like Dullaghan.
"Everybody says they're coming down, but when you're talking about $1,300 a month, what's
the difference between $1,200 and $1,300 really?" Dullaghan said. "It's still a potful of money."