Reliant Group buys 160-unit apartment building in San Jose for $71M

Deal for two-story complex built in 1982 works out to $434K per unit

Reliant Group Buys San Jose Apartment Building for $71M
Reliant Group's Joseph Sherman with 4375 Payne Avenue (Reliant Group, Google Maps, Getty)

Reliant Group has purchased a 160-unit apartment building in southwest San Jose for $71 million.

An affiliate of the San Francisco-based investor led by Joseph Sherman bought the Moreland Apartments at 4375 Payne Avenue, the San Jose Mercury News reported. The seller was undisclosed.

Reliant Group’s affiliate obtained $73.9 million in financing at the time of its purchase, including $60.4 million from Citibank and $13.5 million from Reliant Cap X, according to county records.

The deal for the two-story complex, built in 1982, works out to $433,750 a unit.

The value was on the lower end of apartment buys in the Bay Area within the last nine months, according to a review of deals for multifamily properties by the Mercury News.

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They range from this year’s sale of a 100-unit complex in Pleasanton for $35.5 million, or $355,000 a unit, to the sale this year of a 100-unit complex in Palo Alto for $59.9 million, or $599,000 a unit.

Diridon West, a 249-unit complex in Downtown San Jose, sold this year for $117.5 million, or $471,900 a unit, according to the analysis.

Reliant, founded in 1992, has acquired more than $3.7 billion in real estate across the West, plus select markets in Texas and Florida, with a focus on multifamily properties and affordable housing, according to its website.

— Dana Bartholomew

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