The Atrium Garden apartments in San Jose have been sold to an affiliate of Interstate Equities Corporation, a real estate firm based in Los Altos, for $18.5 million, according to The Mercury News. The seller’s identity was not disclosed.
Located at 1536 Kerley Drive, the 160-unit property was built in 2000 and sold at a price of $115,600 per unit. This sale price is significantly lower than other recent apartment transactions in the South Bay region.
Recent sales in the area include the ViO apartments in South San Jose, which has 234 units and sold for $100 million, or $427,400 per unit. In another transaction last month, a Stockbridge Capital Group affiliate sold the Linq apartments—230 units at 1700 Newbury Park Drive—to Ethos Real Estate and Prospect Ridge for $97.6 million, amounting to over $424,000 per unit.
Sack Capital Partners and Las Palmas Housing recently acquired the Fountain Park apartments—a 164-unit complex at 1028 South De Anza Boulevard—for $52 million ($317,000 per unit). The seller was also undisclosed.
In August, the Park Kiely apartments at 355 Kiely Boulevard set a record as Standard Communities joined with nonprofit Housing on Merit and investment company Vistria Real Estate to purchase the 948-unit property for $370 million ($390,300 per unit) from a Greystar affiliate. Earlier this year in April, Rockpoint Group bought The Villages at Cupertino for $207.2 million.
According to reporting from Silicon Valley Business Journal, multifamily properties with more than 100 units have averaged about $458,000 per unit over the past five years in this region.
Data cited by Marcus & Millichap suggests that demand for apartments could be increasing in the South Bay area. Rising home prices “may drive more demand for apartments from priced-out buyers,” said Marcus & Millichap in its second-quarter report on the multifamily market.
