Equity Residential starts construction on $215M apartment project

Equity Residential has pulled permits to start construction on what it’s calling Tasman Apartments, a 554-unit apartment project at 99 Vista Montana near the Cisco Systems campus in North San Jose.

The $215 million complex is next door to Equity’s other big North San Jose project called Domain, which the publicly traded REIT says is the largest modular-construction residential development on the West Coast. It’s now in lease-up mode. (Click here to see a time-lapse video of Domain’s construction.)

Tasman Apartments will include a pool, spa, fitness center, roof deck, bike-repair shop, barbecue center, clubhouse, game center and Wi-Fi lounge.

“We are very excited to have construction on Tasman under way,” Peter Solar, vice president of development for EQR, said. “Given the success of Domain just one block away, combined with the abundance of mass transit access close by, new local amenities and long list of on-site features, we envision Tasman will become one of the region’s most highly sought-after apartment communities.”

Equity is also building two public parks: Domain Park, which will be five acres, and a one-acre park at Tasman Apartments that will start construction in 2015.

North San Jose has been among the most active apartment markets in the region, as acres of older industrial space are converted into residential. Irvine Co. has been the most aggressive developer in the area. But that spigot is expected to slow as the area reaches a city cap on new units.

Style Interior Design is doing the interiors and common areas at Tasman Apartments. Ross Construction is the general contractor. The architect is Humphrey Partners, and the landscape design firm is Valley Crest Design.

Equity Residential (EQR) reported fourth-quarter numbers this week, showing funds from operations — a key measure of apartment REITS — rising to 77 cents a share from 57 cents a share. Overall revenue was up 41 percent to $639.8 million.