Apartments Sell in Millbrae, Cupertino

SAN FRANCISCO-Two apartment units in the region have changed hands for a combined $68 million. Pacific Property Co. of Palo Alto paid $39.7 million for a 230-unit property in Cupertino in a joint venture with Capri Capital partners while BayRock Residential of Emeryville paid $28 million for a 72-unit complex that it intends to convert to condominiums.

The Cupertino property, called Sage at Cupertino, was developed in 1969. Property features a swimming pool, fitness center, clubhouse, business center, a newly remodeled leasing center and covered parking. Pinnacle will manage the property. The seller, a joint venture of Wolff Co. of Arizona and William Lyon of Newport Beach, had largely completed a renovation of the property. Pacific plans to inject “a modest amount” of additional capital to complete the renovation.

Pacific Property expects to enjoy “meaningful upside” in rents without having to invest significant dollars in further upgrades as the Bay Area recovery continues to gather steam, according to Pacific’s acquisition manager Eric Schrumpf. “The property itself is in excellent condition given the recent renovation,” he says in a prepared sentence. “However, we believe that the full rent benefit of the rehab has not yet been realized.”