Stockbridge Sells San Jose Apartments at Discount

An apartment complex in San Jose sold for nearly $100 million in the latest multifamily transaction in the South Bay city.

The 230-unit property at 1700 Newbury Park Drive, known as the LINQ, sold for $97.6 million, the Silicon Valley Business Journal reported. That’s over $424,000 per unit. The buyer was a joint venture between Ethos Real Estate and Prospect Ridge, the Registry reported. The seller was an affiliate of Stockbridge Capital Group, which acquired the property for about $104 million in 2019.

The apartments, called the LINQ, were built in partnership between The Core Companies and Republic Urban Properties and were completed in 2016 at a cost of more than $70 million, according to The Core Companies.

The average price for multifamily properties with more than 100 units in the past five years was approximately $458,000, according to the Business Journal.

The complex is near San Jose’s Berryessa BART station, which is set for a renaissance with commercial and residential developments surrounding the station. The advancement of SB 79 in the state legislature could boost development around transit stops throughout the Bay Area if passed.

Elsewhere in San Jose, two other large multifamily properties traded hands this month.

Last week, Sack Capital Partners and Las Palmas Housing bought the Fountain Park apartments at 1028 South De Anza Boulevard for $52 million. An undisclosed seller handed off the property in a deal working out to $317,000 per unit.

Prior to that, a Greystar affiliate sold Park Kiely, a 948-unit affordable apartment complex at 355 Kiely Boulevard, in one of the South Bay’s priciest multifamily transactions so far this year. That development was sold to real estate firm Standard Communities, nonprofit Housing on Merit and investment company Vistria Real Estate for $370 million, or $390,300 per unit. It was the highest amount paid for a multifamily property in Santa Clara County so far this year. — Chris Malone Méndez