San Jose Multifamily Property Sells for Nearly $19 Million

The Atrium Garden apartments in San Jose sold to an affiliate of Los Altos-based real estate firm Interstate Equities Corporation for $18.5 million, The Mercury News reported. The seller was not disclosed.

The 160-unit property at 1536 Kerley Drive was built in 2000 and sold for $115,600 per unit. That price is notably lower than other apartment deals in recent months in the South Bay.

The ViO apartments in South San Jose, which has 234 units, sold in late September for $100 million, or $427,400 a unit. Also last month, a Stockbridge Capital Group affiliate sold the 230-unit Linq apartments at 1700 Newbury Park Drive in San Jose to Ethos Real Estate and Prospect Ridge for $97.6 million, or more than $424,000 per unit.

Sack Capital Partners and Las Palmas Housing bought the 164-unit Fountain Park apartments at 1028 South De Anza Boulevard for $52 million, or $317,000 per unit. The seller in that transaction was undisclosed.

In August, the sale of the Park Kiely apartments at 355 Kiely Boulevard set an overall price record for the San Jose area this year. Real estate firm Standard Communities, nonprofit Housing on Merit, and investment company Vistria Real Estate teamed up to buy the 948-unit property for $370 million, or $390,300 per unit, from a Greystar affiliate. The previous record for the county this year was set in April when Rockpoint Group bought The Villages at Cupertino for $207.2 million.

The average price for multifamily properties with more than 100 units in the region in the past five years is about $458,000 per unit, the Silicon Valley Business Journal reported.

Apartment demand in the South Bay could be on the rise, per Marcus & Millichap data cited by the Mercury News.

Rising home prices “may drive more demand for apartments from priced-out buyers,” the firm said in its second-quarter report on the multifamily market.

— Chris Malone Méndez