Two apartment complexes in South Bay fetch $105M

Doris Davis revealed as seller of San Jose and Cupertino properties

Prometheus Real Estate Group CEO Jaclyn Safier and McClellan Terrace at 7954 McClellan Road in Cupertino (Prometheus, ApartmentFinder, Getty Images)
Prometheus Real Estate Group CEO Jaclyn Safier and McClellan Terrace at 7954 McClellan Road in Cupertino (Prometheus, ApartmentFinder, Getty Images)

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.

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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

Klingbeil Capital’s James Klingbeil with Via Reggio Apartments (USC Lusk Center for Real Estate, Klingbeil Capital Management)
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