Holland Partner Group purchased a 218-unit apartment complex between the Westfield Valley Fair and Santana Row malls in west San Jose for $105.3 million.
An affiliate of the Vancouver, Washington-based investor bought the Meridian at Midtown at 1432 West San Carlos Street, next to Meridian Avenue, the San Jose Mercury News reported, citing public documents. The seller was Essex Property Trust, a real estate investment trust based in San Mateo.
The deal works out to more than $483,000 per unit.
Essex bought the five-story building in 2018 for $104 million, or more than $477,000 per unit.
The 1.2 percent gain in the property’s value over eight years suggests a flat market for rental housing in the South Bay city.
Meridian at Midtown, built in 2015 at a cost of $74 million, has 14,000-square-feet of ground-floor shops and pool. Its studio, one- and two-bedroom apartments rent for between $2,500 and $3,600, according to Apartments.com.
In recent years, fading values and failed loans have haunted a growing number of apartment properties in multiple Bay Area markets, according to the Mercury News.
The financial setbacks have led to foreclosures of prominent residential hubs.
But an uptick may be on the horizon for the South Bay apartment market.
Average rents are expected to rise 4.4 percent this year, according to Marcus & Millichap, which predicted San Jose’s rent growth will lead major markets this year.
This month, Bedford Affordable Housing Foundation and Post Investment Group bought a 262-unit apartment complex at 2118 Canoas Garden Avenue in San Jose for $87.7 million.
In April, the Sobrato Organization and Pacific West Communities filed preliminary plans to turn a 1.3-acre parking lot at 143 South Third Street in downtown San Jose into a 173-unit affordable housing development.
In March, an affiliate of Post Investment Group, based in Beverly Hills, purchased the 152-unit low-income apartment complex at 1930 Almaden Road in San Jose for $41 million. —Dana Bartholomew
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