(Read more on the multifamily market.)
SAN JOSE, CA-Fairfield Residential has sold the Fairway GlenApartments here for $25.2 million. The new owner is a joint ventureof San Diego-based RedHill Investors LP, a value-add apartmentinvestor making its first Bay Area investment, and institutionalmoney partner Hanover Financial. The property is 98% leased.
The purchase price for Fairway Glen equates to $175,000 per unitand $211 per sf. The cap rate is 4.9% based current revenue. Asource familiar with the acquisition tells GlobeSt.com that RedHillexpects to pick up where Fairfield left off renovating units andthen raising rents, which is expected to pull the cap rate up intothe mid-5% range within a year or so. Arroyo & Coates partnerCurtis Gardner and SVP Mark Leary had the dispositionassignment.
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