Post Investment Buys More San Jose Affordable Apartments

It’s been a week of back-to-back buys in San Jose for Post Investment Group.

The Beverly Hills-based investors, acting through real estate arm Post Real Estate Group, purchased the Cherry Creek Apartments at 2020 Southwest Expressway in San Jose’s Willow Glen neighborhood for approximately $34 million, the Silicon Valley Business Journal reported. Post bought the property in a limited partnership that also includes Oregon-based nonprofit Foundation for Affordable Housing, according to documents cited by the Business Journal.

Cherry Creek Apartments was built in 1968 and has 130 units. The purchase price works out to approximately $262,700 per unit — below the county average, but in line with Post’s other San Jose purchase in recent days. In the past five years, multifamily properties in Santa Clara County with more than 100 units have sold for an average of $467,417 per unit, per CBRE data cited by the Business Journal.

The complex, like Post’s other new San Jose acquisition, participates in the federal Low-Income Housing Tax Credit program, limiting residents to an annual income of $84,000 for a one-person household.

Earlier this week, news broke that Post purchased a 152-unit residential property at 1930 Almaden Road in south San Jose for $41 million, or nearly $270,000 per unit. Despite having a diminished per-unit value compared to the rest of the market, the residences still fetched a price 20.6 percent more than its most recent assessed value of $34 million. Incomes at that LIHTC-backed property are restricted to $82,620 for one person or $118,020 for a four-person household.

Post Real Estate Group has several multifamily properties under its belt in San Jose, including Orchard Glen, David Apartments, Regency Square and Foxdale Village Apartments. The Cherry Creek Apartments purchase brings its total San Jose holdings to seven properties totaling more than 1,000 units. — Chris Malone Méndez