X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

SAN JOSE-Fairfield Residential has sold the recently completed Brickyard Place Apartments for $47 million or $267,045 per unit. The new owner, San Francisco-based AGI Capital Group, plans to sell off the 176-unit property as condominiums.

Brickyard Place is located on Third Street in Downtown San Jose, just south of San José State University. The building is situated above a subterranean parking garage and also has a large interior courtyard. The unit mix is one- and two- bedroom units averaging 828 sf.

The complex was reportedly in lease up when the buyer came along, so leasing was halted. The disposition was handled by the apartment division of the San Francisco-based brokerage Arroyo and Coates.

The company’s financial group also assisted AGI in securing acquisition and conversion financing. The conversion financing included a budget for upgrades to the project, interest reserve and other project related costs through the sell out period.

Arroyo & Coates SVP Curtis Gardner represented Fairfield in the transaction. Gardner tells GlobeSt.com that the sale is “just another example of the demand for entry level housing in the Bay Area.” AGI’s COO Frank Chan did not respond to a request for comment.

Typically, condo converters will pay 20% to 50% more for an apartment development than an income buyer would pay. In turn, the condo converter’s goal is to sell the units for between 25% and 30% higher than it paid on a per unit basis. If that holds true, AGI will be trying to sell the Brickyard Place units for an average of just under $350,000.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.