Exclusive: Sack Capital Cashes In $56M for Silicon Valley Asset
The community traded for a higher price compared to its previous 2021 sale.
Prometheus Real Estate Group has bought Bellflower, a 93-unit community in Sunnyvale, Calif., for $55.9 million, or $601,075 per unit, according to Yardi Matrix information. Sack Capital Partners was the seller.
The property previously traded in 2021, when Sack Capital purchased the asset from a private individual for $49 million, or $526,881. At the time, Wells Fargo Bank issued a $27.3 million acquisition loan.
The current deal marks a 14.1 percent increase in the property’s sale price.
Located at 678 Bellflower Ave., the eight-building, two-story property opened in 1969. Multiple dining and retail options, including Trader Joe’s and Safeway, are less than one mile away. The property has access to State Route 82, which also provides easy connection to downtown San Jose, some 12 miles southeast.
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The unit mix at Bellflower includes two- and three-bedroom floorplans ranging from 967 to 1,330 square feet. All units have washer/dryers and microwaves. Select units also feature private walk-in closets and balconies or patios.
Shared amenities at the pet-friendly community include a fitness center, two swimming pools, a hot tub, an outdoor grilling area, a bike repair station and a dog park. Moreover, it includes more than 130 parking spaces, with covered parking and detached garages also available.
Silicon Valley sees rent and investment growth
In the third quarter of this year, Silicon Valley had the tightest vacancy across the Bay Area, at 2.7 percent, down 10 basis from the previous quarter, according to a recent CBRE report. The average rent stood at $3,661, up 8.6 percent year-over-year.
Meanwhile, multifamily transaction volume reached $569 million across 24 sales, with the average per unit price landing at $400,000.
Notable multifamily deals in Silicon Valley during this period included the sale of Lynhaven, a 636-unit community at 919 S. Winchester Blvd., some 8 miles from Bellflower. KKR acquired the asset from Greystar, Yardi Matrix shows. The property traded in August for $346.5 million, or $544,811 per unit, above the average in the area, but below Bellflower’s figure.
