Two apartment complexes in South Bay fetch $105M

A local investor that sold two apartment buildings in the South Bay for $100 million has been revealed.

An affiliate of Doris Davis, a family office based in San Jose, sold a 116-unit complex in San Jose for $53.3 million and a 94-unit building in Cupertino for $52 million, the Silicon Valley Business Journal reported.

The buyer of the San Jose complex was an affiliate of Klingbeil Capital Management, based in Virginia. The three-story Via Reggio Apartments, built in 1988, sits on 3 acres at 1277 San Tomas Aquino Road at Saratoga Avenue.

The deal, first reported by The Real Deal, came out to $459,000 per unit.

Klingbeil Capital borrowed $25.5 million from PNC Bank National Association to buy the 3-acre Via Reggio complex, according to Santa Clara County records.

The buyer of the Cupertino building was Prometheus Real Estate Group, based in San Mateo. The two-story McClellan Terrace, built in 1971, sits on 5 acres at 7954 McClellan Road, west of Highway 85.

The deal came out to $553,191 per unit.

It follows the purchase of a 333-unit complex in Milpitas last month by San Diego-based MG Properties for $193 million, or $580,000 per unit.

MG Properties also linked up with Los Angeles-based Oaktree Capital Management to buy a 551-unit development near the Berryessa/North San Jose BART stop in San Jose for $327 million, or $673,321 per unit.

The deals come as the market for apartments is rebounding. according to the Business Journal. A growing return-to-office trend in Silicon Valley looks to be driving a dramatic hike in rents in San Jose, The Real Deal reports.

Investors believe local companies’ return-to-work plans will bolster the apartment housing market, JLL Senior Managing Director Ryan Wagner said in an interview.

— Dana Bartholomew

Read more

San Francisco

Klingbeil Capital pays $459K per unit for San Jose apartment complex

San Francisco

Silicon Valley’s return-to-office trend tied to jump in San Jose resi rents