Pacific Urban Investors has purchased a 201-unit apartment complex in Cupertino for $123.8 million.
The Palo Alto-based investor led by Alfred Pace bought Arioso, a three-story complex at 19608 Pruneridge Avenue, the San Jose Mercury News and ConnectCRE reported. The seller was CIM Group, based in Los Angeles.
The deal works out to $615,920 per unit — on the high side for the Bay Area, according to the newspaper.
Arioso, built in 1998, contains one- and two-bedroom apartments that average 1,000 square feet over eight buildings spread across the property, with parking for 382 cars. Rental rates range from $3,351 to $10,185 a month, according to Apartments.com.
The complex has landscaped courtyards, a swimming pool, clubhouse, business center, basketball court and a fitness center.
“Bay Area demand dynamics are strong for multifamily, a theme that is particularly true in Cupertino and should result in durable income for Arioso over its intended hold period,” John Fluke, managing director of investments at Pacific Urban, said in a statement.
CIM bought the property near Kaiser Permanente’s Santa Clara medical center in 2005 for $57.5 million, or $286,070 per unit, according to Multi-Housing News.
The firm then renovated the complex for an undisclosed cost, including exterior upgrades, new landscaping and upgrades to the gym and clubhouse, pool and deck, according to CIM.
CIM also revamped the apartments with quartz countertops, stainless steel appliances, vinyl plank flooring and the addition of full-size washers and dryers.
Pacific Urban, a multifamily investor founded in 1998 by Pace and George Marcus, was once known as Pacific Urban Residential. The firm has $7.8 billion in assets under management, with 21,000 apartments in 13 states, according to its website.
Two years ago, Pacific Urban planned to spend $2.5 billion on apartment properties across the U.S., with increased investment in large cities in the Southeast and Southwest.
The firm recently bought two complexes near Denver with a combined 832 units for $220 million, according to Multi-Housing News. In May Pacific Urban bought a 412-unit luxury complex in Atlanta for $103 million.
— Dana Bartholomew