Stephen Ross’ Related Companies has announced plans for a $6.5 billion development in Santa Clara California, according to a report in The Wall Street Journal.
That city, located 40 miles south of San Francisco, has approved a plan for 8 million square feet of offices, retail, hotels and apartments to be developed by related, two years after the company first proposed it. It is to be located at a landfill. Before it can begin, however, the proposed development must pass an environmental review.
“We’re now in a major expansion mode, ” William Witte, chief of Related’s California division, told the Journal. “The economy is stable and growing, and appears like it will be for some time.”
“Santa Clara is already on the map but this is certainly going to put us way over the top, ” said City Manager Julio Fuentes. The city expects to bring in as much as $28 million annually in taxes on the new complex.
But not all residents are happy with the plan. Some expect to see congestion and traffic problems because of it. Others are also worried that they will lose an area golf course and want assurances that a new one will be built.
In addition to Santa Clara, related expects to begin construction on two new towers in San Francisco sometime in 2016. The company also has plans for a $2 billion mixed use development for Los Angeles in the works.
Just two weeks ago Related California, the West Coast Affiliate of Related Companies, announced that veteran real estate executive Greg Vilkin will join the company as President of Related California Urban Residential, a newly formed division, and as a member of the senior executive team. In the newly created role, Mr. Vilkin will lead all of the firm’s market-rate and luxury residential development opportunities, both stand-alone and within mixed-use environments, throughout the state. He will officially join the firm on October 1.
Stephen M. Ross, Chairman of Related Companies, said, “I am very pleased to have Greg join our talented executive team in California. His over 30 years of diversified real estate experience across the Western Region will further enhance our industry leadership position and ensure we execute on our strategic growth plan for the region.”