The challenges that come with trying to build apartment buildings in California, even in some of the nation's most expensive rental markets, are no secret.
The new AVE Santa Clara anchors the new Clara District, capping a vision for a new residential neighborhood in the Silicon Valley city that began nearly a decade ago when developers began buying real estate in the area. Along the way, the project faced challenges ranging from the bankruptcy of its original architect and contractor to pandemic-driven delays that affected the availability of construction materials.
The developers overcame those problems to open AVE Santa Clara early last year, earning the project a 2026 CoStar Impact Award, as judged by real estate professionals familiar with the market.
The project achieved 95% occupancy of its luxury apartment rentals within seven months of opening, validating demand for walkable, amenity-rich apartments near tech campuses. It's been a catalyst for the rapid expansion of the Clara District, a 45-acre modern new neighborhood near landmarks such as Levi's Stadium and the headquarters of tech giants like Nvidia that the city has envisioned for years to replace old industrial and office buildings on the north side of town.
As many as 4,500 units and 100,000 square feet of retail are eventually planned for the neighborhood — what the city calls the Tasman East Specific Plan — which would make it denser than parts of San Francisco. Housing advocates in California have noted that it's the type of development the state needs to solve a chronic housing shortage.
About the project: AVE Santa Clara is an eight-story, 311-unit complex anchoring a vibrant, mixed-use neighborhood. Developed by Ensemble Investments and Korman Communities, AVE Santa Clara offers a unique combination of luxury apartments and furnished units offering flexible leases for stays of 30 days or longer. It features amenities such as flexible workspaces, private conference rooms and a two-story fitness center, resort-style pool and spa. Residents can obtain complimentary outdoor gear such as bicycles, kayaks and camping gear at the AVEnture Hub, an amenity that aims to help residents connect with California's abundant nature.
What the judges said: “Construction financing, materials costs and labor constraints have created significant challenges for developers in recent years," said Compass Commercial Senior Vice President Devon Stout. "Their ability to push the development across the finish line serves as a great example of what is still possible in one of the most capital-intensive and high-barrier markets in the country."
They made it happen: Rob Gomez, Kambiz Babaoff, Michael Moskowitz and Conrad Garner of Ensemble Investments spearheaded the project along with Brad Korman, Lea Anne Welsh and Jeff Brown of Korman Communities with the help of Steven Edwards of Rethink Development Corp. and Brian Nixon of NXN Consulting.