SAN JOSE, CA—GlobeSt.com has exclusively learned that Alterra San Jose, a 144-unit multi-housing community here in San Jose, CA, has changed hands. Pacific Urban Residential and Hunt Cos. were the sellers.
Pacific Urban Residential and Hunt previously acquired the property on an off-market basis in early 2011 experiencing significant increases in rents and value as the San Francisco/Silicon Valley markets began to recover from the financial crisis of 2008-2010.
Sares Regis Multifamily Fund LP purchased the asset subject to the existing Freddie Mac financing. The acquisition is the sixth for Sares Regis since forming its fund in early 2013 with over $100 million in equity commitments. The purchase price was not disclosed.
Alterra San Jose is located near the intersection of Almaden Expressway and CA-87, within walking distance of Caltrain’s Tamien Station and less than two miles southeast of downtown San Jose. Originally constructed in 1988, the property features 14 residential buildings with one- and two-bedroom units ranging in size from 750 to 900 square feet. Community amenities include a poolside fitness center, heated swimming pool and spa, and covered parking. At the time of sale the property’s unit interiors had not been renovated.
“Alterra offers a solid value-add opportunity to renovate the unit interiors and reposition the property so it competes with neighboring communities while capitalizing on the region’s significant employment and rental growth,” says Kenneth Gladstein, co-chief investment officer of the Sares Regis Multifamily Fund.
According to Pacific Urban Residential CEO Al Pace, “we are delighted with the sale and success of this early cycle investment, effectively doubling invested equity in three years. We believe the SF Bay Area remains a prime investment arena and know Sares Regis will do very well with their asset investment plan.”
The HFF investment sales team representing the seller was led by director Nathan Blair of HFF’s San Francisco office, with support from capital markets director Charles Halladay of HFF’s Orange County office. The buyer was self-represented.