Core acquisition opportunities like 121 Tasman in the northern San Jose market are limited, says brokerage firm IPA.

SAN JOSE, CA—Zurich Alternative Asset Management LLC, the alternative investment advisor to Zurich North America and its affiliates, responsible for the group’s hedge fund, private equity and US real estate investments, has purchase an asset here for $86.7 million. The sale of the property, 121 Tasman, a 174-unit, market rate transit-oriented apartment community located in the “Golden Triangle” area of Silicon Valley, equated to $498,000 per unit.

Institutional Property Advisors, a division of Marcus & Millichap, executive vice president Stanford Jones and IPA first vice presidents Philip Saglimbeni and Salvatore Saglimbeni advised the seller, a joint venture between developer LCOR Ventures LLC and Cigna Realty Investors.

Dating back to 1997, Zurich, advised by ZAAM and predecessor entities, acquired over $2 billion of assets directly with a focus on high quality commercial properties with high grade tenancy. ZAAM currently manages approximately $2.5 billion of commercial real estate exposure in the United States for its various affiliated balance sheets. The ZAAM team representing the buyer was led by managing director Sean Bannon and director Chris Edgar.

“Core acquisition opportunities of this type in the northern San Jose market are limited because the majority of the residential developments in the area are controlled by institutions with long-term hold periods,” says Jones. “121 Tasman is a recently constructed asset with distinct advantages relative to the competitive set and an exceptional location in one of the nation’s most desirable investment markets.”

Saglimbeni adds that the multifamily housing market in San Jose has recorded a rent growth rate of 10.8% over the last 12 months and as of the fourth quarter of 2013, an average occupancy of 96.9%. “121 Tasman’s exceptional construction, ultra high-end finishes and top-of-market amenity package highlight its boutique feel, setting it apart from comparable assets and making it one of the premier rental communities in the Golden Triangle.”

Completed in 2013, 121 Tasman was 95% leased by April 2014. The four-story apartment complex is located immediately across the street from the VTA Baypointe light rail station, allowing hassle-free access to key destinations throughout the South Bay. Unit interiors have fully equipped gourmet kitchens, solid surface countertops, designer fixtures and finishes, nine-to-12-foot ceilings, oversized windows, walk-in closets, technology docking stations and full-size front-load washers and dryers. Community amenities include a state-of-the-art fitness center with spin and TRX studios; an executive business center with video conferencing; a bocce ball court with a lounge area and fireplace; an outdoor barbecue and dining area; a large dog park; a lounge with a billiards table and demonstration kitchen; and a resort-style swimming pool and spa with a furnished sundeck.