Two Silicon Valley apartment complexes sell for $51M

Two investors involved in separate deals have picked up apartment complexes in Silicon Valley for a combined $51 million.

A Campbell-based group led by Yue and Jean Mar bought the Scotia Apartments at 1785 Almaden Road in San Jose for $31.3 million, the San Jose Mercury News reported. A group led by Tod Spieker bought the Midtown Court Apartments at 2721 Midtown Court in Palo Alto for $20 million.

The sellers behind both deals were undisclosed.

The 55-unit Scotia Apartments was built in 2020 near San Jose’s Willow Glen district. The five-story complex was assessed in the middle of last year at $29.9 million. The $31.25 million purchase works out to $568,200 a unit.

The 60-unit Midtown Court Apartments was built in 1963 in Palo Alto’s Midtown district, where there are many restaurants and coffee shops. The three-story complex, with an assessed value of $3.6 million, was last sold in 1981. The $20 million purchase works out to $333,300 a unit.

The transactions indicate that Bay Area apartment complexes remain attractive for investors who want a piece of the Silicon Valley housing market, according to the Mercury News. Interest remains strong despite a high tide of uncertainties, tech layoffs, rising interest rates and inflation.

— Dana Bartholomew