Beverly Hills-based investors paid a premium for a San Jose apartment complex serving low-income residents.
An affiliate of Post Investment Group purchased a 152-unit residential property at 1930 Almaden Road in south San Jose for $41 million, the Mercury News reported. The seller in the transaction was not disclosed.
The price amounts to almost $270,000 per unit.
The Almaden Road property traded hands for 20.6 percent more than its most recent assessed value of $34 million, according to county records cited by the Mercury News.
But the price puts the apartments at the lower end of pricing in San Jose over the past year. It is geared toward low-income residents, via the Low Income Housing Tax Credit program, known widely as Section 42. Incomes are restricted to $82,620 for one person or $118,020 for a four-person household.
Recent trades in San Jose show strong prices for affordable apartments.
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, in September.
And in August, a joint venture between real estate firm Standard Communities, nonprofit Housing on Merit and investment company Vistria Real Estate bought the 948-unit Park Kiely affordable apartments at 355 Kiely Boulevard for $370 million, or $390,300 per unit, setting a price record for affordable apartments in San Jose.
Recent trades of market-rate apartments have been pricier.
Essex Property Trust purchased the 234-unit ViO apartments for $100 million, or $427,400 per unit, last fall.
Ethos Real Estate and Prospect Ridge bought the 230-unit Linq apartments at 1700 Newbury Park Drive for $97.6 million, or more than $424,000 for each residence.
Meanwhile, affordable housing developments are in the pipeline in San Jose, including Resources for Community Development’s 99-unit project called the Lupina, which secured $82 million in construction financing in November.— Chris Malone Méndez
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