The John Stewart Company has secured a $30.2 million federal loan to refinance a 192-unit apartment complex in San Jose, which will pay for its renovation.
The San Francisco-based multifamily investor landed the loan from the U.S. Housing and Urban Development Department. It will fund upgrades to the Monte Alban Apartments at 1324 Santee Drive, the San Jose Mercury News reported, citing JLL
The loan was structured as a cash-out option that provides funds to undertake renovations at a dozen buildings throughout the 11-acre garden-style complex, built in 1970 and revamped in 2006.
The 30-year, fixed-rate loan from HUD exceeds the estimated value of the property, which was $24.8 million in January, according to the Santa Clara County Assessor’s Office.
The Monte Alban has one-, two-, three- and four-bedroom apartments, with features that include a community room, laundry facilities, an exercise room, a basketball court, two swimming pools and two playgrounds, according to JLL.
The complex sits near the U.S. Highway 101 interchange with I-280 and I-680. It’s also close to Downtown San Jose and San Jose Mineta International Airport.
John Stewart intends to revamp much of the complex, which is 100-percent leased, with rents that are 40 percent to 60 percent below market rates, according to JLL.
“The refinancing allows for $47,000 per unit in property renovations and upgrades,” JLL stated.
That would work out to $9 million in renovations. John Stewart and JLL didn’t specify whether the upgrades would be inside or outside the apartments, or both.
The John Stewart Company, founded in 1978 by John Stewart, owns more than 400 multifamily properties containing more than 30,000 units across California, including 121 properties in the Bay Area and 90 properties in Los Angeles, according to its website.
— Dana Bartholomew
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