Sunnyvale Apartments Sell to PGIM, Interstate Equities

PGIM and Interstate Equities Corporation came together to buy another South Bay multifamily property.

Singapore-based Mapletree sold the 184-unit Maddox corporate apartment complex at 870-874 East El Camino Real in Sunnyvale for approximately $76.9 million, or about $417,935 per unit, the Silicon Valley Business Journal reported.

The property spans approximately 131,000 square feet across 4 acres. A Mapletree affiliate bought the site in 2014 for $69.5 million, SiliconValley.com reported.

It’s the second such deal between PGIM, Interstate Equities and Mapletree this month. Last week, PGIM and Interstate bought Mapletree’s 149-unit property at 881 East El Camino Real in Mountain View for $87 million, or about $583,900 per unit.

Both the Sunnyvale and Mountain View properties are part of a portfolio of corporate apartments that Mapletree has been offloading over the past year, a spokesperson for Interstate Equities told the Business Journal. The other properties include mResidences Redwood City, a 141-unit complex at 2580 El Camino Real in Redwood City, and Cumulus SLU, a 100-unit building in Seattle’s South Lake Union district.

The South Bay has seen plenty of multifamily property transactions over the past year as the market heats up with rising rents and constrained inventory of available homes.

This week, Acacia Capital Corporation, acting through an affiliate, bought the 287-unit Sofia residences in Santa Clara for $183 million, or $639,900 per unit. Last month, a group including California housing nonprofit Pacific Housing bought Ascent, a 650-unit complex at 5805 Charlotte Drive in San Jose, for $322.8 million, or $496,500 per unit. In October, Interstate Equities’ made another multifamily play in the South Bay with the acquisition of the 160-unit Atrium Garden apartments in San Jose for $18.5 million, or $115,600 per unit. A month before that in September, Essex Property Trust bought the 234-unit ViO development at 5700 Village Oaks Drive in San Jose sold for $100 million, or $427,400 per unit. — Chris Malone Méndez