FPA Multifamily goes big for San Jose trio

Pays $135M for 1970s apartment complexes

FPA Multifamily's Greg Fowler, the Sierrabrook Apartments at 1265 N. Capitol Avenue, the Casa Verde Apartments at 2050 McKee Road and Pacific Terrace West at 496 Boynton Avenue (FPA Multifamily, Google Maps, Getty)
FPA Multifamily's Greg Fowler, the Sierrabrook Apartments at 1265 N. Capitol Avenue, the Casa Verde Apartments at 2050 McKee Road and Pacific Terrace West at 496 Boynton Avenue (FPA Multifamily, Google Maps, Getty)

A local investor has bought three half-century-old apartment buildings in San Jose for $134.8 million.

An affiliate of FPA Multifamily, based in San Francisco, bought the Sierrabrook Apartments at 1265 N. Capitol Avenue, the Casa Verde Apartments at 2050 McKee Road and Pacific Terrace West at 496 Boynton Avenue, the San Jose Mercury News reported.

The combined purchase included 145 apartments, in three separate deals. It paid $245,000 per unit. The sellers were not disclosed.

FPA bought the 220-unit Sierrabrook, built in 1973, for $74.2 million. Its rents range from $2,250 to $2,750 a month.

Its purchases include the 149-unit Casa Verde, 149 units, built in 1972, for $46.2 million. Rents range from $1,936 to $2,913 a month.

And it picked up the 46-unit Pacific Terrace West,built in 1973, for $14.4 million. Rents range from $2,513 to $2,873 a month.

In August, FPA Multifamily paid $55.5 million for an 18-story tower with 178 apartments at 1130 3rd Avenue near Lake Merritt in Downtown Oakland. An FPA executive said the company doesn’t comment about its business activities or real estate transactions.

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“The firm has transacted on approximately over $20 billion of apartments totaling 700 buildings in excess of 130,000 units,” FPA Multifamily states in a post on its website. “FPA Multifamily has marketplace credibility built on over three decades of investing.”

The 37-year-old company has been on a multifamily selling spree.

In June, FPA Multifamily sold a 142-unit apartment complex in Ontario, in Southern California’s Inland Empire, for $45.6 million.

In April, the FPA sold a 662-unit apartment complex outside Chicago for $111 million, for which it paid $72 million in 2017.

A few weeks later, it sold a 128-unit complex in the Central Valley city of Visalia for $30.7 million.

— Dana Bartholomew

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