Silicon Valley Multifamily Campuses Trade for $135M

Three San Jose apartment complexes encompassing 415 units have been acquired by Irvine-based FPA Multifamily in a deal totaling $135M.

FPA bought the 220-unit Sierrabrook, located a 1265 N. Capitol Avenue for $74.2M, which translates into $245K per unit. Rents at the community, which was built in 1973, range from $2,250 to $2,750 a month.

FPA also acquired the 149-unit Casa Verde Apartments at 2050 McKee Road for $46.2M, and the 46-unit Pacific Terrace West at 496 Boynton Ave. for $14.4M. The sellers were not disclosed.

In August, FPA paid $55M for an $18-story tower encompassing 178 units located at 1130 3^rd Avenue near Lake Merrit in Downtown Oakland.

The company’s acquisitions in San Jose and Oakland come in the wake of its unloading of several multifamily assets.

In June, FPA Multifamily sold a 142-unit multifamily campus in the Inland Empire town of Ontario for $46M; in May, the company sold a 662-unit apartment complex in suburban Chicago for $111M, an asset FPA paid $72M to acquire in 2017.

In April, FPA sold a 128-unit multifamily campus in Visalia in California’s Central Valley for $31M. FPA, which does not discuss its real estate transactions, declined to identify the seller for all of the above.

Several developers are moving forward on plans to build new multifamily units in the Stevens Creek area of San Jose, which is designated an “urban village” zone by the city.

Miramar Capital has submitted plans to San Jose’s Planning Commission to replace an aging office and retail complex at 4300-4360 Stevens Creek Boulevard in West San Jose with 580 apartment units, a 250-room hotel as well as restaurants and shops.

The site, which is west of Kiely Boulevard and north of the 280 Freeway, currently includes three office buildings with ground-floor retail that were built more than 50 years ago.

The development, to be known as Stevens Creek Promenade, will feature three new multifamily buildings and underground parking. Miramar Capital is planning to designate 173 apartment units in the development as affordable housing.

Stevens Creek Promenade also will feature a hotel that will include 8.5K SF of retail space and restaurants as well as an underground parking garage.

To make way for the development, three office buildings built in the 1970s will be demolished and Lopina Way, which currently is straddled by the property, will be rerouted to the eastern edge of the property and replaced with a pedestrian walkway.

Miramar is planning to retain two one-story commercial buildings on the property and fold them into the development.

The aging office property was acquired by FortBay in 2016 for $53M. FortBay received approval from the city to build two apartment buildings, a 233K SF office building and a parking garage on the site.

Miramar bought the property and development rights from FortBay in 2020 for $54M.